11092023 BUSINESS

business@tribunemedia.net

THURSDAY, NOVEMBER 9, 2023

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BOB rejects $33m ArawakX demand

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE SECURITIES Commission was yesterday accused of “callous disregard” for ArawakX’s interests by allegedly interfering with its demand for a $33m settlement from Bank of The Bahamas.

D’Arcy Rahming junior, a director of The Bahamas’ first-ever crowd-funding platform, also claimed that the BISX-listed bank had given a “false and misleading narrative” by denying it was in settlement discussions with ArawakX over the six-month freezing of the latter’s bank accounts.

The claims, contained in a November 8 affidavit, emerged just one day before Chief Justice Ian Winder is due to rule on the Securities Commission’s

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Mr Rahming’s evidence is another, albeit late, step to rebut the capital markets regulator’s case.

Asserting that it was “axiomatic”, or unquestionable, that Bank of The Bahamas “will

have to answer for the harm caused” in freezing ArawakX’s bank accounts, he argued it had “cynically” denied to the Securities Commission that the two parties were in settlement talks knowing this would strengthen the regulator’s case for the winding-up.

The Supreme Court’s appointment of a provisional liquidator, Mr

Rahming added, would benefit Bank of The Bahamas because there was no guarantee that the crowdfunding platform’s legal claim against it would survive. However, Christina Rolle, the Securities Commission’s executive director, has previously reassured that a provisional liquidator would

SEE PAGE B4

BPL readies late fee to cut $100m debts

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net BAHAMAS Power & Light (BPL) has received approval to impose a $5 monthly fee on the 80 percent of customers who pay their bill late as it bids to slash its $100m accounts receivables.

Shevonn Cambridge, its chief executive, yesterday told the Bahamas Institute of Chartered Accountants (BICA) annual accountants’ weeks seminar that it has received regulatory go-ahead to implement the levy given that more than

SHEVONN CAMBRIDGE four out of every five customers pay their monthly bills after the due date.

With the cash-strapped state-owned utility’s accounts receivables, representing monies owed by residential and business

SEE PAGE B7

Bahamas natural resources in $150m yearly protection

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS requires “in excess of $150m” annually to protect its critical natural resources, it was disclosed yesterday, amid efforts to raise just one-fifth of this sum to fund ongoing conservation projects.

The Bahamas Protected Areas Fund (BPAF), which was established in 2014 as a legal body to manage and oversee 121 marine and land-based protected areas, gave an insight into the scale of the financing necessary to strengthen this country and its environment against the ever-growing threat of climate change.

Launching its ‘Protecting the Gold of our natural resources’ campaign, which seeks to raise $30m over the next five years to help finance conservation partners, education and research institutions, the Fund’s senior executives acknowledged that the Government “cannot cover the cost of climate change alone”.

Glenn Bannister, chairman of The Bahamas Protected Areas Fund, said: “Studies have shown that it requires in excess of $150m annually to effectively manage the Bahamas National Protected Area System.

SEE PAGE B7

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BAHAMASAIR BOEING 737

Bahamasair in pilot retirement age rise over shortage fear

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMASAIR is seeking to raise its pilot retirement age to 65 amid fears it faces an imminent shortage of experienced captains with eight passing through the ‘departure gate’ since 2022.

The national flag carrier now wants to lift its longstanding mandatory pilot retirement age of 60 by five years so that it can return this expertise and ensure a smoother succession, with a further three captains set to hit that threshold and leave the airline during the 2024 first half.

However, increasing the retirement age is inextricably bound-up with industrial agreement negotiations with the Bahamas Airline Pilots Association, which have yet to be concluded. The loss of up to 11 captains, which sources said amounts to the departure of around 30 percent of Bahamasair’s most experienced pilots in two-and-half years, is also coinciding with the expansion of the airline’s fleets and routes.

Another Boeing 737 jet is scheduled to join before 2023 year-end, and a 72-seat ATR turbo prop set to be added in time for summer 2024. Bahamasair

SEE PAGE B6

PAGE 2, Thursday, November 9, 2023

THE TRIBUNE

Embrace digital change to drive long-term growth

T

he COVID-19 pandemic was a catalyst for digital transformation, pushing companies to rethink their strategies and adapt to rapidly changing circumstances. As we transition into a post-pandemic world, it is important to reflect on the lessons learned and explore the future direction of digital transformation.

Remote work has become a permanent fixture in the business landscape. The lessons learned during the pandemic have shown that companies need to finetune their digital tools and platforms to support hybrid work models effectively.

This means creating seamless workflows that blend in-person and remote collaboration, ensuring that teams can communicate and collaborate regardless of their physical location.

The pandemic accelerated the adoption of telemedicine and health technology solutions. Going forward, the healthcare sector will continue to leverage digital transformation to provide better patient care and improve operational efficiency. This includes the expansion of telehealth services, the development of remote patient monitoring technologies and the use of data analytics to enhance healthcare delivery.

The education sector experienced a significant shift towards online learning during the pandemic.

This trend is expected to continue as educational institutions and organisations embrace digital tools to provide greater access and flexibility. Digital transformation will play a pivotal role in developing and delivering high-quality, engaging online educational experiences, ensuring that learners can access education from anywhere.

KEITH

ROYE II COVID-19 underscored the impact of human activity on the environment.

In response, many companies are incorporating sustainability into their digital transformation strategies. This includes reducing energy consumption, optimising supply chains and adopting eco-friendly practices. Digital transformation can help companies monitor and manage their environmental impact more effectively.

Artificial intelligence (AI) and automation are set to play increasingly central roles in business operations.

These technologies have the potential to enhance productivity, reduce costs and create new opportunities for innovation. AI-driven analytics, chatbots and automated workflows are just a few examples of how businesses can leverage AI and automation for efficiency and competitiveness.

Secure and decentralised systems, such as blockchain, will be instrumental in enhancing security, data integrity and digital identity management.

Blockchain technology can be applied to various sectors, including supply chain management, healthcare and finance, to ensure the integrity and security of digital data.

As digital transformation continues to evolve, regulatory bodies are adapting to ensure privacy and security standards are met.

Businesses must remain vigilant in complying with evolving regulations, particularly regarding data privacy and cyber security. Proactive compliance measures will be essential to navigate the evolving regulatory landscape successfully.

The pandemic highlighted the importance of resilience and business continuity planning. In response, companies must include measures in their digital transformation strategies to address future crises and ensure business continuity. This means creating agile systems and processes that can adapt to unexpected disruptions.

Embracing these digital transformation trends in the post-pandemic world is essential for companies looking to thrive in the evolving business landscape.

By focusing on adaptability, customer-centricity, data-driven decision-making, robust cyber security and the strategic integration of digital technologies, businesses can position themselves for longterm success and growth in a digital-first future.

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THE TRIBUNE

Thursday, November 9, 2023, PAGE 3

Arawak port targets 40% energy slash If there is no movement in the space, the lights will go off reducing waste of costly energy.

“Further initiatives planned include purchases of more electrical vehicles (EV) over time, and establishing charging stations for EV. As we are moving towards more sustainable ways of operating business, EV falls within this purview,” APD continued.

“Our plan is to install four charging stations for our EV including the golf carts, which would enable us to measure how much energy our fleet of EV consumes and the less harmful impact on the environment

versus that of internalcombustion-engine (ICE) vehicles.”

APD disclosed that its performance for the 2024 first quarter, which covers the three months to endSeptember, is already exceeding projections although it only produced percentages rather than figures. “Nassau Container Port’s (NCP) TEU volumes as of September 30, 2023, are tracking to close 3 percent over budget,” it added of twenty-foot equivalent unit (TEU) throughput.

“Total revenues as of September 30, 2023, are

BPL too often ‘holding the bag’ for developers

capacity, the ships docked in the cruise port can consume 72 Mega Watts (MW), equivalent to almost onequarter or 25 percent of New Providence’s current consumption.

He said: “If you look at the new cruise port, that’s another area where we will also see some potential for increased revenue as we go into increasing our cruising and mega yacht potential.

“A lot of these vessels are now required through maritime laws to turn off their engines when they go into ports. So they’re not going to be requiring shore power.

Our berth out at Potters Cay has capacity. I think the six - three mega ships and three regular ships - at one time, these ships take about 10 to 12 MW of power each.

“So when the cruise port is full, if we were to get all of them on shore power that’s about 72 MW. That’s almost a quarter or thereabout of what we consuming on the island as a whole.”

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NASSAU’S main commercial shipping port is aiming to slash energy costs by between 30-40 percent through its solar energy expansion with key financial indicators already beating 2024 full-year forecasts.

BISX-listed Arawak Port Development Company (APD), in its annual report for the year to end-June 2023, said its 157 kilowatt (KW) solar expansion is designed to drive reductions in energy costs that

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net BAHAMAS Power & Light (BPL) is seeking a more “equitable” contribution from developers that need it to provide additional generation capacity for their projects, its chief executive revealed yesterday.

Shevonn Cambridge told the Bahamas Institute of Chartered Accountants (BICA) accountants’ week seminars that BPL was often left “holding the bag” when developers halt projects and exit the jurisdiction after demanding that the electricity supply network be upgraded.

He explained that when BPL makes infrastructure investments, it plans on providing power generation for decades to recover its costs. And, if developers decide to “pack up shop” after a few years, this will not happen.

“With major investments and even some residential projects, BPL requests capital contributions. This is a shared cost between the utility and the developer or property owner, and the potential exists to guarantee a more equitable contribution from these parties so that BPL does not assume such a high cost for the infrastructural outlay,” Mr Cambridge said.

“When people come in, they say they’re going to do projects and put certain requirements on BPL to do it. We make the investment.

A year or two later you decide you’re going to pack up shop. We’re left with the costs. Most of our projections when we do system upgrades and things like that is we plan to recover that cost over a 20-30 year period. If that falls short, we’re left holding the bag.”

Mr Cambridge added that while BPL supports development throughout The Bahamas, investors should consider

are already “extremely high”.

“Leading up to 2023, the Company had 36 KW of solar power installed,” APD told its shareholders. “During the year, the company embarked on adding additional solar panels, increasing the solar power by 157 KW. It is projected that the addition will help to reduce energy costs by roughly 30 percent to 40 percent.

“As electricity represents a major cost, the department introduced further cost controls. Light sensors that respond to room occupancy were added to some offices and restrooms.

their energy needs at the outset to avoid issues later.

He said: “Some major projects recently completed or currently underway cost BPL millions of dollars in material. While we will always support economic development on our islands we need developers to do more planning of their energy needs. And, at the same time, there should be more equitable distribution of the costs and risks associated with the electrical components of these projects.

“We encourage those of you who work with developers on these major capital projects, as well as your clients, to ensure that your energy needs are considered at the forefront of your planning exercises, especially if the project is going to require considerable power input.

“We find a lot of people come at the tail end after

the buildings are built, after the factory is built or whatever, and when they hear the cost to get power to them it becomes an issue.”

Mr Cambridge said that BPL has an opportunity to capitalise on the increasing use of electric vehicles (EVs). “Where I see the most potential is from the surge of EVs, and I don’t think it’s a matter of whether we’re going to be pushed or pulled, it’s just a matter of time,” he added.

“So we’re going to have more people using EVs, and so that’s going to put some pressures on us,Mt but it also creates some revenue.

So BPL will be able to benefit from the increased demand.”

Mr Cambridge added that the Nassau Cruise Port also provides an avenue for increased revenue as many ships have to turn off their engines while in port. At full

SEE PAGE B6

Bahamas ‘unable to grasp’ liberalised trade sacrifices

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE Bahamas has not “been able to grasp” the sacrifices and reforms that are required by trade liberalisation, the head of this nation’s trade commission argued yesterday.

Philip Galanis told the Bahamas Institute of Chartered Accountants (BICA) annual accountants week conference that this nation has “not been able to get our hands around” all the implications of becoming a full member of the World Trade Organisation (WTO), the body which oversees the world’s rules-based trading regimes.

He said: “We have at the Trade Commission been given a mandate also to begin the process of, or continue the process of, admission into the WTO, the World Trade Organisation. There are a number of reasons why we’ve not made more progress than we have in recent years. In fact, we started the process in 2002. This is now 2023,” Mr Galanis said.

He explained that rulesbased, liberalised trade regimes require making “sacrifices” that the Bahamian people have not been prepared to make. This has left The Bahamas as the only country in the Western Hemisphere that has not become a full WTO member “We are unfortunately the only country in the Caribbean, the only country in the Western Hemisphere actually, that’s not a member of the WTO and there have been a number of reasons for that, principal of which is that liberalization is an issue that has with it a number of implications that we’ve not really been able to grasp and get our hands around,” Mr Galanis added.

“What that means essentially is that when we liberalise trade, it means that we are going to have to make certain sacrifices that we as a country have not really been prepared to do.”

Mr Galanis said there is a “certain amount of xenophobia” that Bahamians display when faced with the prospect of hiring foreign labour, with professionals “very protective” of their jobs and industries.

He said: “For example, there’s always a certain amount of xenophobia related to the free movement of people. We don’t want people coming into The Bahamas and taking our jobs. The lawyers don’t want it, the architects and the engineers don’t want it.

We want to be very protective in our various industries and our professions. And so there are some issues relative to trade liberalisation that need to be worked out.”

Mr Galanis said the Trade Commission is working on identifying industries that may be vulnerable to trade liberalisation as well as those that will benefit most. He added that the Commission will make recommendations to the Government on “bolstering” the most vulnerable sectors.

He said: “We’ve got to, at the Trade Commission, help to identify what those vulnerabilities are and help to try to address them.

“We also have to try as a commission to identify industries and sectors that will benefit most from trade liberalisation. There are some industries that we believe will do extremely well as a result of liberalising our trade. And finally, we want to provide recommendations to the Government on bolstering the vulnerabilities and the sectors that will be impacted by trade.”

PAGE 4, Thursday, November 9, 2023

THE TRIBUNE

BOB rejects $33m ArawakX demand FROM PAGE B1 be mandated to pursue all such cases.

Nevertheless, Mr Rahming alleged that the regulator, through asking Bank of The Bahamas to confirm if it was in settlement negotiations, had sparked the BISX-listed institution’s “abrupt and calculated rejection” of ArawakX’s settlement proposal.

He also produced a September 7, 2023, e-mail from Michelle Deveaux, an attorney with McKinney, Bancroft & Hughes, in which she promised to send a settlement proposal on Bank of The Bahamas’ behalf as evidence the latter was seeking to negotiate a resolution to the Arawak dispute.

Khalil Parker KC, the Bahamas Bar Association’s president, in a September 15, 2023, letter set out ArawakX’s “position on settlement” in response to what he said was Bank of The Bahamas’ request. He argued that the account freeze, which stemmed from the Rahmings’ battle for control with the platform’s largest investor, James Campbell, had disrupted a $49.8m project to

develop a government savings bond.

As a result of this, and other impacts, Mr Parker said his client was prepared to accept a $32.977m settlement plus legal costs of $824,426 and VAT levied on the latter sum. “As the defendant was at all material times aware, its conduct complained of has resulted in loss and damage to the claimant’s standing with its regulator and an interruption of the claimant’s use and enjoyment of its market place and clearing facility licence,” he wrote on ArawakX’s behalf.

“The claimant at all material times had commenced a project pursuant to a signed proposal with the Government of The Bahamas worth upwards of $49.8m, which the defendant’s conduct complained of herein frustrated, causing loss and damage to the claimant.

“The defendant’s conduct also damaged the claimant’s relationship with its creditors, whose claims it was prevented from satisfying, and has exposed it to claims from its third-party subscribers. The claimant suffered a seven-month loss of earnings, reflecting $560,159 in subscriptions

and other income, and $4.182m in success fees,” Mr Parker continued.

“The claimant also seeks $420,000 with respect to the aggravated nature of the injuries caused in the circumstances. The claimant is prepared at present to accept $32.977m and $824,426 plus VAT with respect to its costs of and occasioned by this matter in full and final settlement.” Mr Parker added that the account freeze had also impacted ArawakX’s credit and reputation, plus interfered with its business relationships.

It is unclear how the $32.977m figure was derived, although a large chunk is likely related to loss of opportunity concerning the $49.8m government savings bond development.

However, Simon Wilson, the Ministry of Finance’s financial secretary, previously said talks with ArawakX had not progressed beyond the “proposal” stage and there was no binding agreement or contract between the two sides.

Mr Rahming, though, yesterday argued that Ms Deveaux’s September 7, 2023, e-mail to Mr Parker provided “clear evidence”

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that ArawakX and the bank were in settlement talks. “Additionally, a last reminder on any WOP (without prejudice) proposal from your side,” she wrote. “If not, my client has asked me to send one to you.”

Tribune Business was yesterday told that Bank of The Bahamas, which is 82 percent majority owned by the Government through NIB and the Public Treasury, and its Board and management would never agree to a near-$33m settlement of ArawakX’s claim.

And Neil Strachan, Bank of The Bahamas’ managing director, told Ms Rolle in an October 25, 2023, e-mail that no settlement has been agreed with the embattled crowd-funding platform as the latter’s offer was previously “rejected”.

“This is to formally advise that Bank of The Bahamas has not engaged in any negotiations of settlement terms, nor have we agreed to a settlement relative to MDollaz/ArawakX. An offer for settlement was sent to our attorneys.

However, the offer was rejected,” he wrote.

The Securities Commission’s chief asserted that Bank of The Bahamas’ response contradicted previous sworn assertions by ArawakX executives and Mr Parker “that there are ongoing settlement discussions/negotiations” between the parties. The bank’s position also had implications for ArawakX’s hope that a damages payout could restore it to financial health amid claims it has a $2.4m solvency gap.

Mr Rahming, in his affidavit yesterday, alleged that the Securities Commission’s outreach to Bank of The Bahamas further showed it was on a “campaign to wholly commercially

undermine” ArawakX and the “integrity of its sensitive negotiations with Bank of The Bahamas”.

ArawakX is seeking damages from Bank of The Bahamas for breach of contract, injury to its credit and reputation and alleged “unlawful interference” with its business relationships, plus aggravated damages. No dollar figure, though, is specified in the statement of claim.

“Bank of The Bahamas having acknowledged its interference with the respondent’s bank accounts in breach of the contract between the parties, the respondent maintains that it is axiomatic that Bank of The Bahamas will have to answer for the harm caused by means of an award of damages, which issue remains live before the court,” Mr Rahming alleged.

Bank of The Bahamas froze ArawakX’s bank accounts from November 1, 2022, to mid-May 2023 amid uncertainty over who held control and signatory authority over them - Mr Rahming and his father, or Mr Campbell. This was done to prevent the bank from exposure to potential liability from either party.

Mr Rahming yesterday accused the Securities Commission of acting as “a dime store Nancy Drew” in assuming the role of detective in seeking to find out whether there were active settlement talks with Bank of The Bahamas.

Alleging that the regulator was effectively playing “a game of ‘Gotcha’” with ArawakX, he branded Mr Strachan’s denial of negotiations as “false”. Mr Rahming said a letter from Bank of The Bahamas rejecting the crowd-funding platform’s offer was received on October 25,

2023 - the same day that Mr Strachan wrote to Ms Rolle.

Referring to Ms Deveaux’s e-mail, he added: “Not only was Bank of The Bahamas actively soliciting a ‘without prejudice’ proposal from the respondent, but counsel for Bank of The Bahamas clearly indicated that should the respondent not provide a proposal, Bank of The Bahamas had instructed her to send one to the respondent.

“It is therefore clear that the parties were engaged in settlement discussions, Bank of The Bahamas having had a proposal which they have yet to submit, and the respondent having submitted a proposal at Bank of The Bahamas’ request.

“Bank of The Bahamas, clearly and cynically, determined to present a false and misleading narrative to [the Securities Commission] aware that it would be presented to the court herein by the applicant with the expectation that should the applicant succeed upon its application herein Bank of The Bahamas may then not have to face a further serious and credible challenge on behalf of the respondent.”

Mr Rahming alleged that the Securities Commission’s intervention has caused “the commercial harm and litigious damage feared and telegraphed” in that it has “precipitated the abrupt and calculated rejection of the respondent’s settlement proposal by Bank of The Bahamas”.

He argued that, without the regulator’s “oppressive intervention”, Bank of The Bahamas would at the very least have submitted its own settlement proposal, and accused the Securities Commission of showing “callous disregard” for ArawakX’s financial interests.

THE TRIBUNE

Thursday, November 9, 2023, PAGE 5

SOVEREIGN DOWNGRADES IMPACT COLINA’S RATINGS RECENT downgrades to The Bahamas’ sovereign creditworthiness and the country’s overall economic prospects are impacting another BISX-listed insurer’s ratings, it was confirmed yesterday.

AM Best, in affirming the financial strength and creditworthiness ratings assigned to Colina Insurance Company and its parent, Colina Holdings (Bahamas), asserted that the life and health underwriter’s “high concentration” of government debt investments had left it exposed to last year’s Moody’s downgrade of The Bahamas.

This, according to the global insurance industry credit rating agency, had left Colina Insurance Company and its parent with “a

low level of risk-adjusted capital”. And AM Best, in echoes of its assessment of rival BISX-listed insurer, Family Guardian, said there are “concerns” about how global economic conditions will impact The Bahamas and, by extension, the life and health insurance industry.

Nevertheless, AM Best affirmed Colina Insurance Company’s existing financial strength rating of ‘B++’ (Good) and longterm issuer credit rating of ‘bbb+’ (Good). It also affirmed the long-term issuer credit rating of ‘bb+’ (Fair) assigned to Colina Holdings (Bahamas) with the outlook on all these credit ratings deemed stable.

“The ratings reflect Colina’s balance sheet strength,

which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM),” AM Best said.

“Colina has limited investment options resulting in a high concentration of sovereign debt holdings.

Due to last year’s downgrades of the Bahamas’ sovereign ratings, Colina’s balance sheet strength assessment reflects a low level of risk-adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR).

“This is offset by low financial leverage levels, good liquidity and healthy regulatory and absolute capital levels. The company’s operating performance continues to be assessed as

strong, with consistently positive operating earnings and minimal impact to operating earnings resulting from events - for example, COVID-19, Hurricane Dorian and the downgrade of Bahamian debt - in recent years.”

AM Best added: “Colina’s business profile assessment is bolstered by its position as a market leader in The Bahamas and its low product risk liability offerings, but these are offset by its geographic concentration in The Bahamas. The company’s ERM framework and governance structure are appropriate for its risk profile.

“Concerns remain regarding global economic conditions and their negative impact on The Bahamas. AM Best will

continue to monitor the economic conditions in the Bahamas and take appropriate rating actions as they change.”

Colina Insurance Company, in a statement responding to AM Best, defended its investment strategy and says it continues to believe in the Government’s creditworthiness. It added that diversification of its investment portfolio is impeded

by The Bahamas’ exchange control regime.

“Colina’s ongoing investment strategy primarily focuses on acquiring longterm sovereign debt securities as they align with the company’s asset/liability management strategy.

Investment choices are also restricted, by the country’s

regulatory exchange control regime,” the insurer said.

“A substantial portion of Colina’s total assets is allocated to investments in The Bahamas’ sovereign debt.

While last year’s national downgrade continues to adversely affect the company’s AM Best rating, Colina maintains its confidence in the creditworthiness of The Bahamas’ sovereign obligations.”

Colina added that AM Best categorises the company in its ‘Financial Size Category VIII’, which is for insurers with equity between $100m and $250m.

SBDC AND DISNEY TOUT ELEUTHERA PARTNERSHIP

PHOTO from L to R: Tiffany Norris-Pilcher, EY Bahamas country managing partner; new CPA, Robert Albury, EY senior accountant; Michele Thompson, EY regional managing partner.

EY accountant in CPA designation EY Bahamas yesterday announced that Robert Albury, a Bahamian senior accountant, has earned his Certified Public Accountant (CPA) designation.

Mr Albury, who joined the firm in 2021, works with clients in the wealth and asset management sector.

He holds a Bachelor of Business Administration (BBA) degree in accounting from the University of The Bahamas.

“My process towards the completion of the CPA examinations was very challenging,” Mr Albury said.

“There were numerous restless nights, extensive hours of listening to lectures and advancing through relentless, complex questions on a daily basis.

“Every step in my journey towards the goal required sacrifice and struggle, and it surely will never be forgotten. I had an amazing support system from my family, friends and EY colleagues that aided me throughout this journey. I am looking forward to the future that I am building and am very grateful for the prayers and encouragement from my loved ones.”

Tiffany Norris-Pilcher, EY Bahamas country managing

partner and regional emerging manager platform leader, said: “Congratulations to Robert on becoming a new CPA. This well-earned designation reflects his hard work and dedication, and gives Robert a platform on which he can build a fulfilling career.

“Attracting and developing local talent is a priority at EY. We work to enable young Bahamians to realise their full potential and provide the necessary training, education and mentorship to make it happen.”

Michele Thompson, EY’s regional managing partner for The Bahamas, Bermuda, British Virgin Islands and Cayman Islands, said: “In line with our purpose of building a better working world, EY strives to develop future generations of local leaders within our diverse and vibrant workforce.

“Access to education plays a critical role in unlocking opportunity. We are proud to address this need through the EY Bahamas Jamaine McFall Memorial Scholarship, which is valued at up to $30,000 per annum, renewable for up to five years. It’s a meaningful way to give back and to strengthen EY’s ties with our community.”

THE Small Business Development Centre (SBDC) will this week launch a social media campaign featuring the progress its partnership with Disney Cruise Line has made since 2020.

The duo, who teamed over the cruise line’s development of its Lighthouse Point destination, highlighted their alliance with the Eleuthera Chamber of Commerce to develop the Eleuthera Business Hub to assist small businesses and entrepreneurs on the island.

Disney Cruise Line was said to have dedicated a $1m investment to this venture over the past three years.

The funding supported the Hub’s creation and aided various business development services, facilitating start-ups and small enterprises. The SBDC, for its part, has channelled more than $175,000 in grants to 34 businesses across various industries in Eleuthera.

Samantha Rolle, the SBDC’s executive director,

JOEY GASKINS

SAMANTHA ROLLE

said: “We’re thrilled about our ongoing collaboration with Disney. Through our flourishing partnership, we’ve launched programmes like the Disney Grant and the Eleuthera Entrepreneurial Training Programme.

These initiatives have championed 69 businesses, providing them with the resources and know-how to start and grow.”

Joey Gaskins, Disney Cruise Line’s regional public affairs director for The

Bahamas and Caribbean, said: “Disney Cruise Line’s collaboration with SBDC over three years has been a resounding success. We’ve always aspired to uplift Eleuthera beyond job offerings, aiming for a stronger local economy and proprietorship opportunities for Eleutherans.

“Our engagement revealed a dire need for training, advisory and financial services. Aligned with our corporate social

responsibility pillars - community, culture, conservation and economic opportunity our joint venture with SBDC remains pivotal for fostering economic prospects.

“Looking ahead, as the opening of Disney Lookout Cay at Lighthouse Point is on the horizon, we believe our strengthened bond with SBDC will lead to more impactful results for small businesses in Eleuthera.”

PAGE 6, Thursday, November 9, 2023

THE TRIBUNE

Bahamasair in pilot retirement age rise over shortage fear knowing multiple retirements were set to occur at once. “Definitely, as it relates to planning changes, they do not come to the company one day and retire tomorrow,” he added.

“When it comes to retirement planning and the amount of years for retiring, you have to talk to Bahamasair management about that. All I can say is that this didn’t happen overnight.... The Association and company are in conversation on the contract as a whole, and the retirement age is included.”

The two sides’ existing contract expired at year-end 2022, but several sources yesterday suggested the negotiations were “dragging” and moving “at a snail’s pace” with the two sides only holding their first meeting in April. Asked when the talks would be completed, and an agreement reached, Mr Johnson replied: “The completion is up to management. These things sometimes take a while.”

Captain Gail Saunders, one of the eight pilots affected by the 60 year-old

retirement age, hinted to Tribune Business yesterday that she would be willing to return to work if this was raised but it depends on the outcome of the Association’s talks.

“As far as I know the union is supposed to be in negotiations with Bahamasair,” she said. “I don’t know what the outcome is. I think they’re finalising the negotiations so I can’t say anything.” One source, speaking on condition of anonymity, confirmed that out of 32 captains - 12 working the jets, 20 on the ATRs - some eight have retired since 2022. That figure will hit 11 by June 2024 with three more departures due.

“Are they they going to keep these captains out, or move the age to 65 and allow expert knowledge to be around while giving up-and-coming pilots more time to be schooled so they don’t have so many new captains and officers flying side by side?” they added.

“The question is: What are they doing? The pilots who have retired, the company has not paid them out, as they are hoping

something happens by moving the retirement age to 65.”

In a note sent to Tribune Business, they added: “From 2022, and up to the time of this writing, the national flag carrier would have lost an estimated 30 percent of its more experienced senior captains due to retirement, some with up to 39 years of experience.

“By June 2024, three more senior captains will be listed as retired. As these aviators leave, they take not just a substantial part of the labour force with them, but also decades of expertise and experience.... The airline was quite aware that a large majority of its senior pilots were baby boomers approaching retirement age. However, they did nothing to [prevent] the mass exodus of these senior pilots.

“There was no succession planning as to the way forward for the airline and as a result, Bahamasair continues to experience an exodus of senior pilots along with their expertise. This is cause for concern.”

Arawak port targets 40% energy slash

Mr Bethell also reiterated the importance to APD’s operations of repairing the Nassau harbour breakwaters. “Among our major considerations and actions at Nassau Container Port has been a focus on four matters,” he added.

“One relates to the critical environmental goal of greening of our property and operations....

“Top of the list is the rescue of the western breakwater that helps to protect the western access to Nassau, which is in continuing rapid decay. This is of massive importance not only for the safety of Nassau Container Port and related shipping but is of even greater import to the viability of our capital city and of first concern to human life and business.

“I cannot overstate the immense and critical value of the break-water to our business, as well as to the nearby shoreline businesses and tourist attractions. It plays a vital role in ensuring the safety of vessels as they enter the harbour to dock,

discharge and load cargo,” Mr Bethell continued.

“Crucially, the breakwater provides extensive protection to the northern coast of the country’s capital, safeguarding it from inundation during storms and other environmental incidents that pose threats to lives and have the potential to disrupt economic activities.

“I once again emphasise that APD remains committed to repairing the breakwater at the western entrance to Nassau Harbour. Since 2021, we have committed significant resources to achieving this goal in terms of securing world-class expertise to assess the state of the breakwater and identifying a highly reputable firm to carry out the necessary rebuilding.

“Success is highly dependent upon government approval and partnership, which we continue to pursue. We will continue to lobby for firm and marketable government approval in that regard.”

FROM PAGE B1 also recently unveiled the launch of service between Exuma and Fort Lauderdale, and is expected to add new winter flights from the US east cost to Grand Bahama, which will create increased manpower demands just as multiple leading pilots retire.

Tribune Business sources, speaking on condition of anonymity, said the timing of these retirements coinciding with planned fleet and route expansions - raised concerns that remaining Bahamasair pilots will have to spend ever-increasing hours in the air, which could lead to fatigue and burn-out.

Tracy Cooper, Bahamasair’s managing director, did not respond to multiple Tribune Business phone calls and messages seeking comment before press time.

However, Mark Johnson, the Bahamas Airline Pilots Association’s president, downplayed the fatigue and burn-out issue, saying: “Pilot fatigue is extensively monitored. I don’t see that as a concern.”

FROM PAGE B3 tracking to roughly 7 percent over budget and our EBITDA (earnings before interest, taxation, depreciation and amortisation) is 53 percent, which is 3 percent more than our budgeted DOM (operating margin) for the same period...

“Although there are quite a number of projects slated to begin or continue in financial year...., management remains conservative and does not foresee a significant increase in project volumes in financial year 2024 over volumes

Speaking to this newspaper from Miami, where he was involved in pilot training exercises, the union chief confirmed that Bahamasair is seeking to raise its mandatory pilot retirement age from 60 to 65 and that this must be done through negotiations with the union on a new industrial contract.

Mr Johnson, adding that Bahamasair pilots have been retiring at 60 for the past 50 years, added that “I don’t know where this stuff is coming from”. However, while telling this newspaper that it needed to speak to Bahamasair management, he indicated that the carrier could have done a better job of recruitment and succession planning knowing multiple retirements were looming at the same time.

Raising the retirement age to 65 would bring Bahamasair in line with national aviation laws enacted in June 2021 and international standards, with the global pilot shortage recently prompting US lawmakers to increase it from 65 to 67 in their nation.

experienced in financial year 2023. Total market volumes are estimated to be around 144,000 TEUs for financial year 2024 or 8,000 TEUs more the 2023 budgeted volumes of 136,000 TEUs.” Dion Bethell, APD’s president and chief financial officer, writing in the annual report said there are now “clear indications” that the Government wants to move forward with proposals to establish a Customs freight station at Nassau Container Port to clear “flagged cargo”, as well as construct a vehicle licensing and inspection facility, after

Mr Johnson, though, said the Association and Bahamasair need to “sit down and have meaningful negotiations” over the issue. “The Association and Bahamasair are in conversation as it relates to age change,” he confirmed. “This company has expressed to us it would like to have the retirement age changed but it has to be done within contract negotiations. They’re ongoing as we speak.

“Whatever happens with the retirement age happens within the contract negotiations. I can’t say what the retirement age will be, but it will definitely happen in the contract negotiations.” While Bahamasair is pushing for 65, sources suggested that a possible compromise would be to raise the retirement age to either 62 or 63 yearsold, with the Association’s members said to be split on the issue.

Raising it to 62-63 would give Bahamasair more time for succession planning, and Mr Johnson signalled that the carrier should have been better prepared

resolution was reached on how this would be financed.

“In terms of ease of doing business, business development and new revenue generation, three pertinent matters come to the fore,” he said. “Firstly, the construction of a dedicated Customs freight station at the Port, aimed at facilitating the inspection and clearance of flagged cargo, has been a topic of discussion at APD for several years, aligning with our company’s growth strategy and national mandate.

“However, previous government administrations were not minded to engage

JOB VACANCY An established Bahamian local company is seeking applications from suitably qualified persons to fill the position of

this project. Furthermore, when APD acquired the franchise to land imported vehicles at Nassau Container Port, almost immediately the notion arose to create a building for the Road Traffic Department that would facilitate vehicle inspection, licensing and insurance providers.

“The idea is to allow importers to drive vehicles off the dock fully up to code in all respects. There is indication that government is ready to move on this proposal as well. In November, there was a clear indication that government is ready to move forward on our proposal,” Mr Bethell added.

“Formerly, the sticking point was repayment to APD for the funds that would be expended to bring this project to fruition. Last year, the idea materialised that importers should be authorised to pay certain Customs fees directly to APD to amortise the costs.”

BMW TECHNICIAN for long-term commitment, growth and longevity.

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NASSAU CONTAINER PORT

THE TRIBUNE

Thursday, November 9, 2023, PAGE 7

BPL readies late fee to cut $100m debts Mr Cambridge said BPL has already received regulatory approval to charge a late fee on overdue bills as a deterrent, and to offset the penalties imposed on BPL when it pays its creditors late due to cash flow issues.

He added: “You can appreciate that there is a time value of money carrying costs associated with late payments. And if we don’t have the money we, too, are subject to additional fees and penalties from our creditors.

“BPL has considered, and already has regulatory approval to implement, a universally-accepted strategy to implement a nominal late fee. A $5 monthly late fee is already in use by many other utilities in The Bahamas. It can be a deterrent to late payments and, at the same time, based on our numbers, it could generate funds to offset the carrying costs associated with those late payments.”

Mr Cambridge added that BPL loses thousands of dollars monthly through

electricity theft. “Collection is just one part of the equation in controlling costs. We are improving the recovery of unbilled units that is through operational losses and what we call loss through theft,” he said.

“While difficult to quantify only until cases are discovered, on average our revenue protection unearths several thousand dollars in cases of electricity theft every month.” Mr Cambridge said BPL has not had an increase to its base tariff since 2010, although it has seen a 100 percent increase in costs and up to 8 percent annual increase in demand over the past 13 years.

He said: “BPL has not had a tariff increase since 2010.

In those 13 years, inputs have gone up exponentially.

The costs of transformers, engines, wiring etc. All have seen nearly a 100 percent increase in costs. At the same time, output has also grown substantially as I’ve told you. We’ve seen about a 2 percent on average growth over that period, with last

year seeing a six to 8 percent growth.

“So we’ve seen an increase in the cost of our inputs and an increase in demand on our output. At some point something has to give. Unfortunately, what tends to give in the absence of proper funding is the quality of service. We’re seeking not to have the quality of our service diminish, so we’re going to have to address that.”

Mr Cambridge explained that BPL’s current base tariff leaves the utility “vastly underfunded”, and confirmed that a study is being conducted to obtain recommendations on how to adjust the levy in a way that is a “win-win” for BPL and its stakeholders.

He said: “BPL’s tariff is the money we collect to fund our operation including capital development, maintenance and salaries.

To be clear, the fuel and its associated costs, like transshipment to the Family Islands, is a direct pass through to our suppliers.

BPL does not keep any of that money and there’s no profit or anything in it for BPL. “The reality of it is that BPL’s current tariff leaves BPL vastly underfunded, and we’re looking to address that. Hopefully as the tariff study that’s currently being conducted comes to a completion, we will get some recommendations that we can do that in a way that is a win- win for all.”

Mr Cambridge added that an increase in BPL’s base tariff rate will allow the utility to improve its efficiency and will not increase electricity bills significantly.

He said: “Basically, that type of study is taking a holistic look at BPL’s rates and its impact on all stakeholders, whether that be the Government, as a utility or you as a consumer.

“An increase in rates does not necessarily mean the customer bills would go up significantly. That increase will also allow us to fund many of the efficiency enhancement measures that

we wish to undertake. And those efficiency enhancement measures we foresee allowing us to operate more efficiently.”

Mr Cambridge explained that although consumers will see an increase in the base rate, the funds will be used to improve efficiency and eventually lower the fuel costs.

He said: “From our modelling, basically what it’s showing us is that when we do that it will positively impact the fuel charge, which when added together will eventually lead to even a reduction in your overall bill.

“So you may see an increase in the base rate, but that increase in the base rate will fund the efficiency enhancement that will drive down your fuel charge and your overall bills. The potential is there for the overall bills to be lower provided the fuel market behaves itself.”

BAHAMAS NATURAL RESOURCES IN $150M YEARLY PROTECTION

Karen Panton, the Bahamas Protected Areas Fund’s executive director, estimated the total costs associated with preserving these sites at more than $200m per year. In a video to mark the launch, she said studies have shown that typically only “one-third” of the budget allocated for conservation is available, and “stakeholders find themselves having to do the work of 19 to preserve national areas”.

“What the numbers show is we need in excess of $200m a year really in The Bahamas,” she added. “We have to find a way or bringing in all the [actors] in the space. We have developers and so forth who are extracting and benefiting, in some cases, from our natural resources; either from the aesthetics or the export.

“We have to invite them to come and have a seat at the table and help us think through how conservation should flow, how sustainable development

should look like. Sustainable development is saying let’s have economic growth and progress, but let’s have it in a way that our natural resources and protection is not destroyed.”

Some 25-30 percent of the coral reefs that lay in Hurricane Dorian’s path were either damaged or destroyed by the Category Five storm, and Mr Bannister added: “Hurricane Dorian was a reminder of the horrific impact of climate change. Thousands of mangroves were destroyed, corals toppled and fresh water aquifers disrupted by contaminants and salt water intrusion.”

Since Dorian, he said The Bahamas’ marine environment has confronted new threats, including stony coral tissue loss disease (SCTLD) which “is devastating marine coral at an alarming rate”. The Category FIve storm, which struck in September 2019, also saw “communities displaced and island

economies still struggling to regain their equilibrium.”

Rupert Hayward, the Fund’s vice-chairman, said: “The Bahamas National Protected Area System is our first and most important line of defense in this country’s struggle to protect itself against the destructive force of climate change.

“Within these carefully regulated sanctuaries, marine and terrestrial habitats are allowed to restore themselves with as little human interference as possible. At the same time, they are home to cutting-edge science-based resource management and mitigation efforts that are central to mitigating and reversing climate change impact.”

The Bahamas Protected Areas Fund (BPAF), established by an Act of Parliament, has the legal mandate to finance the management of protected areas and climate resilience.

Its scope includes over 121 marine and terrestrial

protected areas in addition to the protection of carbon sinks, water resources, wetlands and blue holes, degraded or threatened ecosystems, and areas established for adapting to and mitigating climate change.

The Fund also acts as the Registrar of Protected Areas for The Bahamas.

Its primary aim is to ensure the long-term financial sustainability of these areas through initiatives including ecosystem restoration, wildlife protection and scientific research and policy.

A conservation trust fund, it supports coral reef and mangroves restoration, plus activities that reduce threats to biodiversity and promote climate resilience.

The Fund has issued more than $1.2m in grant funding and, to generate more resources, has embarked on the campaign to raise $30m and offset the cost of managing protected areas through 2030.

FROM PAGE B1 customers, standing at $100m at August 2023, he added that BPL depends on timely payments from consumers to manage its cash flow, pay expenses and fund capital projects to improve operational efficiency.

Mr Cambridge said: “BPL’s receivables.. they exceed $100m from residential and commercial customers as of August 2023. And while we understand that this may be cyclical based on the current increase in consumption and the glide path fuel recovery strategy, we must reinforce the importance of timely payments to improve collections.

“While we continue to encourage on time and consistent payments from our customers, we struggle in this area as more than 80 percent of our customers pay their bills late and BPL depends on consistent and timely payments to better manage cash flow and adequately fund projects.”

FROM PAGE B1 “This funding would ensure we have human capacity including training, certification, technical skills for on-the-ground management activity, monitoring and enforcement, research and education, public awareness, and mainstreaming climate action and nature-based solutions across our national protected area system.

“The Government alone cannot cover the cost of climate action, sustainability and development, and increasingly devastating Atlantic storm events,” he added. “Over the last three years, Bahamas Protected Area Fund has been supporting local partners like the Bahamas National Trust, the Bahamas Undersea Research Foundation, the University of

The Bahamas, the Department of Marine Resources, the Forestry Unit, the Bahamas Marine Mammal Research Organization, and Waterkeepers Bahamas with grants to assess and recover from the impact of Hurricane Dorian.

“We have financed, mangrove and coral restorations, freshwater regeneration, the restoration of National Parks, the establishment of nurseries for native plant species as well as invasive species removal and debris removal. We installed solar systems at several sites including Forest Heights in Abaco and the University of The Bahamas STEM research facility in eastern Grand Bahama. We have invested more than $1.2m in grants.”

NOTICE In the Estate of CAROIL BERNICE BULLARD late of #36A 3rd Street, Coconut Grove in the Southern District of the Island of New Providence one of the Islands of the Commonwealth of The Bahamas, deceased.

PUBLIC NOTICE This is to inform the public that B.K.B Enterprises Machine Shop located on #96 Miami Street will be closing permenantly on Friday, November 24th, 2023 Signed BKB Enterprises Management

NOTICE IS HEREBY GIVEN that all persons having any claim against the above named Estate are required on or before the 20th day of November, 2023 to send their names and addresses and particulars of their debts or claims to the undersigned and if so required by notice in writing from the undersigned to come in and prove such debts and claims or in default thereof they will be excluded from the benefits of any distributions made before such debts are proved AND all persons indebted to the said Estate are asked to pay their respective debts to the undersigned.

HAILSHAMS LEGAL ASSOCIATES Counsel and Attorneys at Law RENALDO HOUSE 10 Queen’s Highway Palmetto Point, Eleuthera, Bahamas P. O. Box SS 5062, Nassau, Bahamas Attorneys for the Administrators of the above Estate Tel: 242-332-0470 email: hailshams@1stcounsel.com

PAGE 10, Thursday, November 9, 2023

THE TRIBUNE

REPUBLICAN presidential candidates, from left, former New Jersey Gov Chris Christie, former UN Ambassador Nikki Haley, Florida Gov Ron DeSantis, businessman Vivek Ramaswamy and Sen Tim Scott, R-SC, stand on stage before a Republican presidential primary debate hosted by NBC News in Miami last night.

Photo: Wilfredo Lee/AP

GOP CANDIDATES UNIFIED ON ISRAEL BUT DIVIDED ON CHINA MIAMI Associated Press IN THEIR first debate since the outbreak of the Israel-Hamas war, the Republican presidential candidates all declared hawkish support for Israel but squabbled over China and Ukraine as they faced growing pressure to try to catch Donald Trump — who was again absent.

At centre stage were Ron DeSantis and Nikki Haley, who has appeared competitive with DeSantis’ second place position in some national polls. Haley, the former South Carolina governor and United Nations ambassador, declared she would end trade relations with China “until they stop murdering Americans from fentanyl — something Ron has yet to say that he’s going to do.”

In return, the Florida governor said Haley “welcomed” Chinese investment to her state, referencing land and economic development deals. Haley then accused DeSantis of scrubbing official websites to hide that Florida had pitched itself as welcoming to Chinese businesses.

The five people onstage faced new urgency to cut into Trump’s margins with the leadoff Iowa caucuses just two months away.

Many of the candidates have gone after each other, hoping to break out as a viable alternative to the former president. They have been emphasising their differences on foreign policy but also ripping Trump for his criticisms of the Israeli prime minister in the wake of Hamas’ attack and for his claims that a group attacking Israel was “very smart”.

Trump was the subject of the debate’s first question, when moderators asked each candidate to explain why they were the right person to beat him.

Said DeSantis, “He owes it to you to be on this stage and explain why he should get another chance.”

Haley, who is pulling some voter and donor interest from DeSantis, said Trump “used to be right” on supporting Ukraine but “now he’s getting weak in the knees”.

In addition to DeSantis and Haley, also appearing onstage Wednesday were South Carolina Sen Tim Scott, former New Jersey Gov Chris Christie and biotech entrepreneur Vivek Ramaswamy.

They all said they were staunchly behind Israel as it mounts an offensive in Gaza following Hamas’ October 7 attack that killed more than 1,400 people.

The candidates did not discuss humanitarian aid for civilians in Gaza as the number of Palestinians killed in the war passed 10,500, including more than 4,300 children, according to the Hamas-run Health Ministry in Gaza.

Several also said they would pressure college campuses to crack down on antisemitism.

The rivalry between DeSantis and Haley has ramped up in recent weeks, with Haley rising in a prominent Iowa poll and gaining new interest from donors and voters. Both campaigns and allied super PACs have hit each other over the war in Israel and the US relationship with China as Republicans take an increasingly antagonistic view of Beijing.

Both candidates have also diverged on abortion rights, a political challenge for Republicans since the Supreme Court overturned Roe v Wade. Supporters of abortion rights claimed new momentum Tuesday after elections in several states went in their favor.

The DeSantis and Haley campaigns for months have attacked each other on China, long a topic of scorn in GOP primaries. Their allied super PACs have run ads in early primary states alleging the other side is soft on Beijing.

Ramaswamy tried to push his way into the centre of the debate. Having long styled himself as someone willing to challenge his rivals, he repeatedly went after other candidates, notably Haley.

She seemed to ignore his first barbs, but snapped back during a discussion about the social media app TikTok, which many Republicans want banned in the US due to its parent company’s ties to China.

Ramaswamy accused Haley’s daughter of having had her own TikTok account until recently.

Responded Haley, “Leave my daughter out of your voice!” She then told him, “You’re just scum.”

Trump has retained huge leads despite his efforts to try to overturn his 2020 election loss, his embrace of those jailed for storming the US Capitol on Jan 6, 2021 and his facing four criminal indictments and a civil fraud case against his businesses for which he testified in New York this week.

His campaign has worked to overpower DeSantis in their shared home state and publicly said it wants to score blowout wins in early primary states to seal the nomination.

DeSantis has used his official role as governor to show support for Israel, authorising the state to fly hundreds of Americans evacuated from Israel to the US, ordered state universities to disband chapters of a pro-Palestinian group, and arranged to help send weapons, ammunition and other supplies to Israel.

Haley, also the former governor of South Carolina, has leaned into her experience as Trump’s UN ambassador arguing in support of the Israeli government.

The race’s overwhelming front-runner, meanwhile, was in a stadium about ten miles away from the debate in the heavily Latino city of Hialeah. He has refused to participate due to his large lead in national and early state polls.

Trump’s campaign has suggested the Republican National Committee should stop having debates and instead focus on supporting his campaign.

Top advisers Susie Wiles and Chris LaCivita raised Trump’s debunked claims of election fraud and said that if the party does not cancel debates, it is “an admission to the grassroots that their concerns about voter integrity are not taken seriously and national Republicans are more concerned about helping Joe Biden than ensuring a safe and secure election”.

The RNC did not respond to a message seeking comment.

THE TRIBUNE

Thursday, November 9, 2023, PAGE 11

Tentative deal is close with Las Vegas hotel workers union amid strike threat, says MGM’s CEO

By RIO YAMAT Associated Press FOLLOWING a breakthrough deal at dawn Wednesday between the Las Vegas hotel workers union and Caesars Entertainment, a tentative contract was taking shape for 20,000 hospitality workers at rival MGM Resorts International that experts say would almost certainly thwart an unprecedented strike on the Las Vegas Strip.

"I believe we will come to a deal today. We know from listening to our employees that they are looking for a pay increase to combat inflation, among other concerns," MGM Resorts CEO Bill Hornbuckle told investors in an earnings call at the same time negotiations were taking place in a casino ballroom. "This deal, when announced, will do just that."

The Culinary Workers Union had threatened to begin a strike in the pre-dawn hours Friday if negotiations failed.

But the union's tentative agreement with Caesars appeared to be providing the momentum needed for the union to win new contracts for all 35,000 of its members who have been working under expired contracts at 18 hotel-casinos.

"As soon as one company reaches a deal, the others just fall right in line," said Bill Werner, an associate professor at the University of Nevada, Las Vegas, whose research includes hospitality law and labor relations. But, he said, "I would say this is as close as we've come in a long time to an actual strike."

The breakthrough pact with Caesars came after 20 straight hours of bargaining that began Tuesday and stretched into Wednesday morning, the union said.

Caesars said in a statement that the agreement "recognizes the integral contributions our Team Members have made to the success we have seen in Las Vegas over the last few years" with meaningful

wage increases and opportunities for growth tied to plans to bring more union jobs to the Strip.

The contract, which is pending approval by the union's rank and file, would cover properties including the company's flagship Caesars Palace and Flamingo, Harrah's, Horseshoe, Paris Las Vegas, Planet Hollywood, Cromwell and Linq.

Outside Caesars Palace on Wednesday, Joshua Guray told The Associated Press he came in on a morning flight from Los Angeles and planned to be in Las Vegas for less than 24 hours.

The only item on his itinerary? A dinner reservation with a friend at one of his favorite restaurants — Bacchanal, the luxury buffet at Caesars Palace.

Guray said he didn't know that tens of thousands of hotel workers were in the middle of contract negotiations before he planned his trip. But he said if a tentative contract hadn't been reached and a strike coincided with his travel plans, he would have ditched his dinner reservations.

"I try to stand in solidarity with other workers," he said. "Life can be hard out there so I understand what they're fighting for."

Bethany Khan, the union's spokesperson, said terms of its deal with Caesars would be made public once approved. A vote is expected to take place in the coming days.

A sweeping walkout could still happen if the union cannot make deals with MGM Resorts, the state's largest private employer, and Wynn Resorts by 5 a.m.

Friday. Negotiations with Wynn Resorts are scheduled for Thursday.

A strike by workers at the two remaining companies would cut to the heart of the city's economic backbone and significantly disrupt operations at some of the most recognizable Las Vegas hotel-casinos as they prepare to host hundreds of thousands of people for next week's Formula 1 debut on the Strip.

It would also be the latest in a series of high-profile actions nationwide in what has been a big year for labor unions. That includes walkouts in Hollywood, UPS' contentious negotiations that threatened to disrupt the nation's supply chain, and the ongoing hotel workers strike at Detroit's three casinos, including MGM Grand Detroit.

The inaugural Las Vegas Grand Prix course will feature sweeping views of many of the casinos at risk of walkouts: Aria, Bellagio, Excalibur, Luxor, Mandalay Bay, MGM Grand, New York-New York, Park MGM and Wynn and Encore resorts.

The hospitality workers say they will strike for as long as it takes to get fair contracts — from the housekeepers and utility porters who work behind the scenes to keep the Strip's mega-resorts humming, to the bartenders and cocktail servers who provide the customer service that has helped make Las Vegas famous.

Tiffany Thomas, a guest room attendant at Mandalay Bay, said she is fighting for her family and future hospitality workers.

"I am willing to go on strike because I have a 10-year-old daughter who comes to negotiations with me, and she is going to inherit all of this," Thomas said. "I refuse to sit back and watch what we've built crumble. I want my daughter to look at me and know I fought for a better future."

Bargaining has been underway since April over pay, benefits, job security and working conditions, but negotiations ramped up in recent months after an overwhelming majority of union members voted in September to authorize a strike.

The vote was followed by large-scale rallies, including one last month that ended with the arrests of 58 workers who sat in the street and halted rush-hour traffic on one of the most recognizable stretches of the Strip.

CITIGROUP DISCRIMINATED AGAINST ARMENIAN AMERICANS, FEDERAL REGULATOR SAYS; BANK FINED $25.9 MILLION

By KEN SWEET AP Business Writer CITIGROUP intentionally discriminated against Armenian Americans when they applied for credit cards, the Consumer Financial Protection Bureau said Wednesday.

The bureau said some bank employees argued internally that Armenian Americans were more likely to commit fraud and referred to applicants as "bad guys" or as affiliated with organized crime.

The CFPB found that Citi employees were trained to avoid approving applications with last names ending in "yan" or "ian" — the most common suffix to Armenian last names — as well applications that originated in Glendale, California, where a significant portion of the country's Armenian-American population lives.

As part of the order, Citi will pay $24.5 million in fines as well as $1.4 million in remedies to impacted customers.

The origins of the case come as a result of some organized crime syndicates operating in Southern California that involve Armenian Americans. The leaders of the Armenian crime rings have been charged with identity theft and other financial crimes, including stealing COVID-19 financial relief funds in recent years.

Citi, based in New York, said a few employees were attempting to stop potential fraud due to this "well-documented Armenian fraud ring operating in certain parts of California" that often involved individuals running up credit card debts, then leaving the country.

However, in the bureau's order, these Citi employees used identifiable information that broadly discriminated against Armenian Americans in general.

"We sincerely apologize to any applicant who was evaluated unfairly by the small number of employees who circumvented our fraud detection protocols," the bank said in a statement. "Following an internal investigation, we have taken appropriate actions with those directly involved in this matter and we promptly put in place measures to prevent any recurrence of such conduct." In its investigation, the bureau found that Citi employees were instructed to single out applications that had Armenian last names, but then to conceal the real reason why those applications were denied. These employees knew they were running afoul of bank laws that prohibit discrimination against national origin, and kept any decisions off recorded phone lines or writing it down.

"Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination," said Rohit Chopra, the director of the CFPB, in a statement.

CFPB officials said the case involves "hundreds of individuals" who were impacted by Citi's discrimination, which is relatively small for a bank that has tens of millions of customers.

However because the behavior was so egregious, the bureau's fine against Citi is relatively high compared to the number of people impacted.

A MAN takes pictures of Caesars Palace hotel and casino in Las Vegas, Jan. 12, 2015. The Culinary Workers Union in Las Vegas has reached a tentative deal with casino giant Caesars Entertainment that could help avert a sweeping strike.

Photo:John Locher/AP

PAGE 12, Thursday, November 9, 2023

THE TRIBUNE

Hollywood actors strike is over as union reaches tentative deal with studios

By ANDREW DALTON AP Entertainment Writer HOLLYWOOD'S actors union reached a tentative deal with studios Wednesday to end its strike, bringing a close to months of labor strife that ground the entertainment industry to a historic halt.

The three-year contract agreement must be approved by votes from the union's board and its members in the coming days, but the leadership declared that the strike will end at 12:01 a.m. on Thursday.

At nearly four months, it was by far the longest strike ever for film and television actors.

More than 60,000 members of the Screen Actors Guild-American Federation of Television and Radio Performers went on strike July 14, joining screenwriters who had walked off the job more than two months earlier. It was the first time the two unions had been on strike together since 1960. Studios chose to negotiate with the writers first, striking a deal that their leadership marked as a major win and bringing their strike to an end on Sept. 26.

The terms of the agreement were not immediately released.

SAG-AFTRA said details would be made public after a meeting on Friday where board members review the contract. Issues on the table included both short-term

compensation and future royalty payments for film and TV performances, along with control over actors' images and likenesses regenerated with artificial intelligence.

Executives from top entertainment companies including Disney, Netflix, Warner Bros. Discovery and Universal had a direct hand in negotiations, which like all Hollywood union talks were led by the Alliance of Motion Picture and Television Producers.

The end of the strike announcement came hours after Disney CEO Robert Iger and Warner Bros. Discovery CEO David Zaslav reported their latest earning statements. Both executives said they hoped the strike would be resolved soon.

Disney's shares rose based on its report, which said its net income jumped 63% to $264 million in the quarter that ended Sept.

30, up from $162 million a year earlier. Zaslav said on an earnings call that the studios' last offer " met virtually all of the union's goals and includes the highest wage increase in 40 years."

Warner Bros. Discovery reported losses and saw its shares fall 19% Wednesday.

Although the writers strike had immediate, visible effects for viewers, including the months-long suspension of late-night talk shows and " Saturday Night Live," the impact of the actors' absence was not

FROM left; SAG-AFTRA captains Iris Liu and Miki Yamashita and SAG-AFTRA chief negotiator Duncan Crabtree-Ireland lead a cheer for striking actors outside Paramount Pictures studio, Friday, Nov. 3, 2023, in Los Angeles.

Photo:Chris Pizzello/AP as immediately apparent.

But its ripple effects — delayed release dates and waits for new show seasons — could be felt for months or even years.

Actors should quickly return to movie sets where productions were paused, including "Deadpool 3," "Gladiator 2" and "Wicked." Other movies and shows will restart shooting once returning writers finish scripts.

And beyond scripted productions, the end of the strike allows actors to return to red carpets, talk

shows and podcasts, as Hollywood's awards season approaches.

"The SAG strike is over!!

I can finally say it: watch my documentary Saturday night at 8 on HBO/MAX!" actor-director Albert Brooks said on social media moments after the strike ended. "Couldn't say a word until now!!"

The only major awards show directly effected by the strike was the Emmys, which was moved from September to January. Now, the usual fall Oscar campaigns will mobilize.

But any feeling of industry normalcy could prove temporary. The circumstances that brought on the strikes — the shift from traditional theatrical and broadcast media to streaming, and emerging tech like AI — have not been slowed.

And the gains made by the strikes may embolden other Hollywood unions, or these same guilds in negotiations that will come up again in just a few years.

Union leaders treated the strike like a watershed moment from the start, coming as it did amid

wider labor fights in other industries.

"I think it's a conversation now about the culture of big business, and how it treats everybody up and down the ladder in the name of profit," SAGAFTRA President and "The Nanny" star Fran Drescher told The Associated Press in an August interview.

Duncan Crabtree-Ireland, the executive director and chief negotiator who led the team that struck the deal for the guild, told the AP in August that he was "honored to be part of making sure that our members get a fair contract that's going to protect them going into the future and make sure that the 14-yearolds I talked to on the Disney picket line still have the ability to be an actor when they turn 18."

The agreement also means a return to sets for thousands of film crew members who have left with nothing to work on during the strikes. SAG-AFTRA sought to offset their hardship by allowing sometimes controversial interim agreements for some smaller productions to proceed, and by making their strike relief fund available to all workers in the industry.

International Monetary Fund warns Europe against prematurely declaring victory over inflation

By DAVID MCHUGH AP Business Writer THE European Central Bank and other policymakers across Europe need to keep interest rates at current elevated levels until they're sure inflation is under control despite sluggish growth, the International Monetary Fund said Wednesday, warning against "premature celebration" as inflation declines from its peak.

The Washington-based IMF said that the cost of underestimating inflation's persistence could be painfully high and result in another round of rate hikes that could rob the economy of a large chunk of growth.

The European Central Bank, the Bank of England and the other central banks that aren't part of the 20-country eurozone "are reaching the peak of their interest rate cycles, while some have started to reduce policy rates," the IMF said in its twice-yearly

regional economic outlook for Europe. "Nonetheless, a prolonged restrictive stance is still necessary to ensure that inflation moves back to target."

Historically, it takes an average of three years to return inflation to lower levels, while some antiinflation campaigns have taken even longer, the IMF said. While central banks appear to have ended their series of hikes, a failure to finish the job and the resulting return to rate hikes could cost as much as a full percentage point of annual economic output.

Alfred Kammer, director of the IMF's Europe department, warned against "premature celebration" as he spoke to journalists in connection with the outlook. "It is less costly to be too tight than too loose" with interest-rate policy, Kammer said. The ECB, which halted its rate increases at its Oct. 26 for the first time in over a year, "is in a good spot," he said.

Inflation in the eurozone peaked at 10.6% in October 2022, and has steadily fallen to 2.9% in October.

The European Central Bank has raised its benchmark deposit rate by fully

4.5 percentage points between July 2022 and September 2023, from minus 0.5% to 4%. Higher rates are the typical tool central banks use to control inflation, since higher rates mean higher borrowing costs for consumer purchases and financing new officials and factory equipment. That reduces demand for goods and eases pressure on prices, but can also hurt growth - a difficult tightrope act for the ECB. The Bank of England left its benchmark rate unchanged at 5.25% at a policy meeting last week.

The IMF said Europe was headed for a "soft landing" after the impact of the rate hikes and did not foresee a recession, while growth forecasts remained uncertain and could turn out better or worse than expected.

It forecast growth for the region - including the UK and Switzerland as well as the 27-country European Union - of 1.3% this year and 1.5% next year. For the eurozone, the outlook is for 0.7% growth for this year and 1.2% next year.

If inflation falls faster than expected, it will boost consumer real income and

NOTICE

NOTICE

NOTICE is hereby given that MILTON MORNLES VASQUEZ, South Beach, 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 9th day of November 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that DIEULA JACQUES, P.O Box AP- 59247 Soldier 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 2nd day of November 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE

NOTICE

NOTICE is hereby given that JOSE ALBERTO POLONIA HERNANDEZ, South Beach, 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 9th day of November 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that ROBERTA PREVAL, Fox Hill, 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 9th day of November 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that RONEL FRANCOIS, Queens Highway, Eleuthera, 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 9th day of November 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Thursday, November 9, 2023, PAGE 13

STOCK MARKET TODAY

Wall Street inches up to extend its winning streak to 8 days as oil falls again

By STAN CHOE AP Business Writer U.S. STOCKS were largely stuck in place Wednesday as Wall Street continues to recalibrate following its sharp recent swings.

The S&P 500 edged up by 4.40 points, or 0.1%, to 4,382.78 for a third straight day of quiet, mixed trading. Its movements have become much calmer after the index screamed to its best week of the year last week, which itself came after months of painful losses.

Though the gain was slight, it was enough to extend the index's winning streak to eight days. That ties its longest such winning streak since a nine-day run 19 years ago.

The Dow Jones Industrial Average slipped 40.33 poinats, or 0.1%, to 34,112.27, and the Nasdaq composite rose 10.56, or 0.1%, to 13,650.41.

Eli Lilly was one of the strongest forces pushing upward on the market.

It rose 3.2% after U.S. regulators said its popular diabetes treatment, Mounjaro, can be sold as

a weight-loss drug and tap into a market with massive potential.

American Airlines, Delta Air Lines and United Airlines were also toward the front of the market, and each rose more than 2% as oil prices continued to drop and ease the pressure on fuel costs.

Warner Brothers Discovery tumbled 19% after reporting a worse loss for the latest quarter than analysts expected. It also lost more streaming subscribers than forecast.

The reporting season for summertime profits is winding down, and the majority of companies has been topping Wall Street's forecasts.

That's usually the case, and it's offered some support for the stock market.

But the big driver for stock price movements since the summer has been what yields are doing in the bond market.

The 10-year Treasury yield fell to 4.51% from 4.57% late Tuesday, helping to impart calm across financial markets.

A swift rise in the 10-year yield that began in the summer earlier knocked the S&P 500 down by more

than 10% from its peak for the year. The 10-year yield briefly topped 5% to reach its highest level since 2007, as it caught up with the Federal Reserve's main interest rate, which is above 5.25% and at its highest level since 2001.

The Fed has jacked up rates in hopes of slowing the economy and hurting investment prices enough to put downward pressure on inflation and get it back to its 2% goal.

Last week, though, investors took comments from Fed Chair Jerome Powell to indicate the central bank's hikes to interest rates may be done. He said the summer's jump in Treasury yields could substitute for further hikes to rates if they remain persistent. That triggered a sharp easing in Treasury yields, which in turn helped stocks to rally.

Now, investors are trying to handicap what may come next. A wide range of outcomes is still possible for the U.S. economy, with the 10-year yield potentially easing as low as 3% if it were to fall into a painful recession, according to Bank of America strategists led by Bruno Braizinha. At

www.ub.edu.bs

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the same time, they said the 10-year yield could rise back above 5% if the economy remains resilient.

A sharp drop in oil prices recently could take some pressure off inflation, which in turn could help the Fed feel more confident about holding rates steady instead of raising them further.

The price for a barrel of U.S. crude oil is back to where it was in July, and it dropped another $2.04 to settle at $75.33. Brent crude, the international standard, fell $2.07 to $79.54.

Oil prices have been tumbling since topping $90 a little more than a month ago. The latest IsraelHamas war raised concerns about potential disruptions to supplies, which made

prices volatile for a while.

But worries about demand are still high given faltering economies around the world, particularly in China.

Stock indexes fell 0.2% in Shanghai and 0.6% in Hong Kong, joining modest losses across much of the rest of Asia. Stocks were higher in Europe.

Elsewhere on Wall Street, Axon Enterprise rose 6.1% after the maker of Tasers, body cameras and other equipment reported stronger profit for the latest quarter than analysts forecast.

Ralph Lauren rose 3.2% after reporting stronger profit for the latest quarter than analysts forecast. eBay sank 2% after its forecast for revenue for the last three months of

2023 fell short of analysts' expectations.

Rivian Automotive swung from an early gain to a loss of 2.4% after the electric vehicle company raised its forecast for how many vehicles it will produce this year and reported weaker profit than expected for the latest quarter.

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Thursday, November 9, 2023, PAGE 15

TO HELP 2024 VOTERS, META SAYS IT WILL BEGIN LABELING POLITICAL ADS THAT USE AI-GENERATED IMAGERY

By DAVID KLEPPER Associated Press FACEBOOK and Instagram will require political ads running on their platforms to disclose if they were created using artificial intelligence, their parent company announced on Wednesday.

Under the new policy by Meta, labels acknowledging the use of AI will appear on users' screens when they click on ads. The rule takes effect some time in the new year and will be applied worldwide. A specific date has not been set.

Microsoft unveiled its own election year initiatives on Tuesday, including a tool that will allow campaigns to insert a digital watermark into their ads. These watermarks are intended to help voters understand who created the ads, while also ensuring the ads can't be digitally altered by others without leaving evidence.

The development of new AI programs has made it easier than ever to quickly generate lifelike audio, images and video. In the wrong hands, the technology could be used to create fake videos of a candidate or frightening images of election fraud or polling place violence. When strapped to the powerful algorithms of social media, these fakes could mislead and confuse voters on a scale never seen.

Meta Platforms Inc. and other tech companies have been criticized for not doing more to address this risk.

Wednesday's announcement by Meta — which came on the same day House lawmakers held a hearing on deepfakes — isn't likely to assuage those concerns.

While officials in Europe are working on comprehensive regulations for the use of AI, time is running out for lawmakers in the United States to pass regulations ahead of the 2024 election.

Earlier this year, the Federal Election Commission began a process

to potentially regulate AI-generated deepfakes in political ads before the 2024 election. President Joe Biden's administration last week issued an executive order intended to encourage responsible development of AI. Among other provisions, it will require AI developers to provide safety data and other information about their programs with the government.

Democratic U.S. Rep. Yvette Clarke of New York is the sponsor of legislation that would require candidates to label any ad created with AI that runs on any platform, as well as a bill that would require watermarks on synthetic images, and make it a crime to create unlabeled deepfakes inciting violence or depicting sexual activity. Clarke said the actions

by Meta and Microsoft are a good start, but not sufficient.

"We stand at the precipice of a new era of disinformation warfare aided by the use of new A.I. tools," she said in an emailed statement.

"Congress must establish safeguards to not only protect our democracy but also curb the tide of deceptive AI-generated content that can potentially deceive the American people."

The U.S. isn't the only nation holding a high-profile vote next year: National elections are also scheduled in countries including Mexico, South Africa, Ukraine, Taiwan, India and Pakistan.

AI-generated political ads have already made an appearance in the U.S. In April, the Republican National Committee released an entirely AIgenerated ad meant to show the future of the United States if Biden, a Democrat, is reelected. It employed fake but realistic photos showing boarded-up storefronts, armored military patrols in the streets, and waves of immigrants creating panic. The ad was

labeled to inform viewers that AI was used.

In June, Florida Gov. Ron DeSantis' presidential campaign shared an attack ad against his GOP primary opponent Donald Trump that used AI-generated images of the former president hugging infectious disease expert Dr. Anthony Fauci.

"It's gotten to be a very difficult job for the casual observer to figure out: What do I believe here?" said Vince Lynch, an AI developer and CEO of the AI company IV.AI. Lynch said some combination of federal regulation and voluntary policies by tech companies is needed to protect the public. "The companies need to take responsibility," Lynch said.

Meta's new policy will cover any advertisement for a social issue, election or political candidate that includes a realistic image of a person or event that has been altered using AI. More modest use of the technology — to resize or sharpen an image, for instance, would be allowed with no disclosure.

Besides labels informing a viewer when an ad contains AI-generated imagery, information about the ad's use of AI will be included in Facebook's online ad library. Meta, which is based in Menlo Park, California, says content that violates the rule will be removed.

Google unveiled a similar AI labeling policy for political ads in September.

Under that rule, political ads that play on YouTube or other Google platforms will have to disclose the use of AI-altered voices or imagery.

Along with its new policies, Microsoft released a report noting that nations such as Russia, Iran and China will try to harness the power of AI to interfere with elections in the U.S. and elsewhere and warning that the U.S. and other nations need to prepare.

BEYOND MEAT REVENUE FALLS AS RISING DEMAND IN EUROPE CAN’T OVERCOME PLUMMETING US SALES

By DEE-ANN DURBIN AP Business Writer BEYOND Meat’s revenue fell nearly 9% in the third quarter as higher sales of its plant-based meat in Europe failed to make up for plummeting demand in the U.S. Beyond Meat on Wednesday reported revenue of $75.3 million for the JulySeptember period. That was far short of the $86.5 million Wall Street had anticipated, according to analysts polled

by FactSet. Beyond Meat cut its third-quarter and fullyear revenue forecast last week, saying an anticipated rebound in plant-based meat sales during the quarter didn’t occur. The company said it would cut 65 non-production jobs — about 19% of its workforce — and conduct a broader review of its operations.

In a conference call with investors Wednesday, Beyond Meat President and CEO Ethan Brown said the company is considering cutting underperforming product lines like plantbased jerky and reducing the size of its operations in China, where demand is growing but not as quickly as Europe. It’s also continuing to cut inventory.

“To drive down the type of cost reduction we’re pursuing everything has to be on the table,” he said.

Brown said customer demand in Europe was a bright spot during the quarter. Beyond Meat’s international retail sales rose 39% while international food service sales jumped 79%, largely due to European demand for its plant-based burgers and nuggets at McDonald’s.

McDonald’s doesn’t sell those products in the U.S.

Brown said European consumers buy plant-based meat because they’re concerned about the climate and they perceive those products as healthier. But in the U.S., he said, ads funded by the meat industry and others have led consumers to see plant-based meat as overly processed and unhealthy. Beyond Meat is running ads this fall to counter that message, he said.

“There’s some misinformation out there that we just need to do a better job of cleaning up,” he said.

The higher price of plantbased meat has also hurt U.S. sales at a time when consumers are stressed about inflation, he said.

Brown said the company lowered some prices in the third quarter but didn’t necessarily bring new customers into the category.

Beyond Meat said its U.S. retail sales fell 34% in the third quarter. U.S. food service sales also fell 22% as restaurants like Panda Express that had limitedtime promotions of Beyond Meat products last fall didn’t repeat those offers this year.

Beyond Meat’s U.S. sales mirrored broader declines across the U.S. industry. U.S. retail dollar sales of fresh meat alternatives, like plantbased sausage and burgers, were down 21.5% this year through Oct. 8, according to Circana, a market research firm. Frozen plant-based meat sales, including items like tenders and nuggets, were down 6%.

The El Segundo, California-based company narrowed its net loss for the quarter to $70.5 million compared to $101.7 million in the same period a year ago. The loss, of $1.09 per share, also fell short of analysts’ expectation of an 89-cent loss.

THE META logo is seen at the Vivatech show in Paris, France, on June 14, 2023. The owner of Facebook and Instagram says it'll put labels on political ads created using artificial intelligence. The new policy announced Wednesday by Meta goes into effect Jan. 1 and will apply worldwide.

Photo:Thibault Camus/AP