11112021 BUSINESS

business@tribunemedia.net

THURSDAY, NOVEMBER 11, 2021

$5.10

$5.11

$5.17

$5.18

Port’s profits to decline 7% VAT reforms despite pre-COVID bounce to cap ‘huge’

refund liability

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NASSAU’S major commercial shipping port is forecasting a 7 percent year-over-year profit decline for 2022 despite predicting container volumes will return to pre-COVID levels in the first quarter.

Arawak Port Development Company (APD), the BISX-listed Nassau Container Port operator, made the relatively conservative forecast in its just-released annual report even though net income for the first quarter of its current financial year was 56 percent or almost $750,000 ahead of internal forecasts.

“For the 2022 fiscal year, we are budgeting gross revenue of $28.618m (2021: $28.775m) or 1 percent less than the prior year’s actual gross revenue,” APD told its shareholders. “Net income is projected to be approximately $6.208m or approximately $464,008 less than the 2021 actual net income of $6.672m.

“The decline in revenues, net income and volumes are solely attributable to the negative impact of COVID-19 on our local economy, especially our tourism sector. Our 2022 fiscal year budget assumes that

• Nassau import volumes back to pre-pandemic in Q1 2022 • But BISX-listed gateway ‘remains extremely conservative’ • Even though net income 56% above target year-to-date

SEE PAGE 6

Nassau Container Port

Change law so staff pay for COVID tests

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A TOP hotelier yesterday issued “a clarion call” for The Bahamas to eliminate legal stipulations that mandate employers must pay for their workers’ COVID19 testing.

Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, used the Accountants Week seminars to challenge both the Government and trade unions to at least work with the private sector on reforming the Health and Safety at Work Act’s section nine.

Robert Sands Speaking during a panel discussion that featured Robert Farquharson, the Government’s director of labour, and Obie Ferguson,

SEE PAGE 7

Target ‘ideal’ 50% debt-to-GDP ratio

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS must target an “ideal” debt-toGDP ratio of less than 50 percent to put its fiscal house in order, an exChamber of Commerce chief executive argued yesterday.

Edison Sumner, principal of Sumner Strategic

Partners, told Bahamas Institute of Chartered Accountants (BICA) members that the country’s debt-to-GDP ratio will be “upside down” if the Government incurs just a few hundred million dollars more in liabilities.

Speaking during the Accountants Week seminar series, he implied that the Government’s debt will

SEE PAGE 8

• Financial services cost cut back-dated to 2019

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE proposed VAT reforms are designed to cap “huge” multi-million dollar refund liabilities owed by the Government to two major transhipment providers, it was revealed yesterday.

Simon Wilson, the Ministry of Finance’s financial secretary, told Tribune Business that eliminating the VAT “zero rating” treatment for these entities would halt “distortion” of the tax system and prevent “future problems” for a cash-strapped Public Treasury by stopping any further growth of these refund liabilities.

He declined to name the two companies involved, and was unable to specify

Simon Wilson how much they are owed in VAT refunds other than to say the sum is “significant”. However, several sources suggested the companies were likely to be some of Grand Bahama’s major industrial conglomerates, with Buckeye Bahamas, owner of the former BORCO oil storage terminal, thought to be one.

Other contenders cited by sources familiar with the

SEE PAGE 6

PAGE 2, Thursday, November 11, 2021

THE TRIBUNE

THE TRIBUNE

Thursday, November 11, 2021, PAGE 3

END TO 12% VAT REALTY RATE ‘SHOWS WE MEAN BUSINESS’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net REALTORS yesterday hailed the Government’s decision to eliminate the 12 percent VAT rate on high-end property sales as “a very solid move”, adding: “It shows we mean business.”

John Christie, HG Christie’s president and managing broker, told Tribune Business that returning to a 10 percent rate on the portion of real estate deals worth $2m and above would “signal to the world” that The Bahamas wants to remain competitive in the fight to attract high-net worth real estate investors and buyers.

The proposed cut was detailed in the VAT (Amendment) (No.2) Bill that was tabled in the House of Assembly yesterday. “Clause five of the Bill

seeks to amend the Third Schedule of the principal Act by reducing the rate of tax on the portion of real property transactions above $2m from 12 percent to 10 percent,” the Bill’s “objects and reasons” state.

The change is part of the Davis administration’s plan to cut the VAT rate from 12 percent to 10 percent, while at the same time returning to the tax’s original broadbased model that it believes will generate more revenues by being similar to administer and enforce.

However, some observers are likely to question why the new administration is seemingly giving a tax break for wealthy real estate purchasers when it has previously stated that the exact opposite intentions are driving its VAT reforms.

Others may also see it as highlighting inconsistent tax policy, as the 12 percent

GOV’T TO ‘SWIFTLY’ PROBE GB SHIPYARD CONCERNS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday pledged to “very swiftly” investigate allegations that unvaccinated Grand Bahama Shipyard sub-contractors are being “replaced” by foreign workers.

Dr Michael Darville, minister of health and wellness, said he and his Cabinet colleagues would “look deeply” into assertions by Kwasi Thompson, the east Grand Bahama MP, that third party contractual workers were being placed in “a very unfair position” after being barred from working at the Shipyard because they are not fully inoculated against COVID-19.

The former minister of state for finance charged that some of these subcontractors were currently unable to access unemployment benefits, or receive severance pay, because their actual employer - who contracts them to the Shipyard - is taking the stance that it has not fired them despite their inability to work.

Suggesting that there were “50 or so of these workers who have challenges with respect to this”, Mr Thompson enmphasised that he was not referring to the Grand Bahama Shipyard’s full-time staff who have the option of either being fully vaccinated or presenting a negative weekly COVID-19 test.

The industrial conglomerate, though, previously confirmed it had introduced a policy where all sub-contractors and third parties must be fully vaccinated to work on its premises in a bid to control the threat posed by COVID-19. Otherwise they will be barred from the site.

Mr Thompson, though, said of the sub-contractors: “We are also being advised that those employees not allowed to come to work are being replaced by foreign workers, which is a very serious problem as a Bahamian should not be disenfranchised from their employment if you made a decision not to take the vaccine or, in your current circumstances, you will not be vaccinated for a certain period of time.”

He called upon Dr Darville as well as Keith Bell, minister of labour and Immigration, and Ginger Moxey, minister for Grand Bahama, to intervene and said more workers may have been affected by the Shipyard’s policy than he is aware of.

Dr Darville, in response, said: “These are allegations that we will move very swiftly to substantiate and between myself, the minister for Grand Bahama and the minister of labour, we will look into the matter immediately.

“The rules are clear. This is not the first time we’ve heard of a company wanting to get ahead of the rules.

We will look deeply into it in an attempt to resolve it immediately, particularly when you articulate that some Bahamians are being

Dr Michael Darville displaced because they do not want to get vaccinated.”

Mr Thompson, though, said the sub-contractors’ challenges did not stop there. “The sub-contractors are having a real challenge in terms of trying to receive unemployment assistance.

They are not able to get unemployment assistance or severance pay.

“I don’t want to call the employer’s name, but that employer is saying: ‘I didn’t fire you. It’s the Shipyard that did not allow you to go to work’, and that is where the legal issue is coming in.

Can you take a look at that as well.”

Speaking subsequently to Tribune Business, Mr Thompson said of the sub-contractors in that predicament: “They are caught in a very difficult position because they have done nothing wrong to warrant a dismissal or termination, and they have also not resigned their employment.

“The challenge is that the place where they work, they’re not allowed to work, and I’m advised that’s creating a challenge with their present employers saying: ‘I have not terminated you’.

They are caught in a very unfair and difficult position through no fault of their own.”

Mr Thompson added that he had also spoken to Jobeth Coleby-Davis, minister of transport and housing, and Mrs Moxey about the licensing situation facing Freeport taxi drivers.

He said the Opposition was calling for a three-month “notice period” that would allow the drivers to regularise their licence status.

“We [the former Minnis administration] were not enforcing where the taxi drivers had to licence their public service vehicles,” he explained. “We are now informed that the Road Traffic Department are now asking them to have their licences renewed, and if their licences are not paid they are unable to work.

“I don’t remember the exact deadline, but we are asking for at least a threemonth notice period. That would be sufficient time for them to pay for their public service licence. Some of them have not worked for a very long time, so they have challenges because we were shut down and no cruise ships were coming to Grand Bahama.

“We want to say to the Government to provide them with sufficient time to pay for their public service licence. We have spoken to both the minister for transport and minister for Grand Bahama, and both have promised to look into the matter.”

rate’s real estate-related elimination comes just over four months after it was introduced by the former Minnis administration on July 1 as part of the original 2021-2022 Budget.

Nevertheless, Mr Christie said: “I think it’s a very solid move. It helps to show we’re serious, and I think it’s a very positive move.

It will show the world that The Bahamas’ government means business in encouraging international investors to purchase in The Bahamas.”

Asked whether the former administration’s decision to levy a 12 percent VAT rate on real estate deals above the $2m mark had deterred buyers, and disrupted deals, Mr Christie replied: “I anticipated that it would have impacted the market.

“What it did was create a big rush, so we were rushing manically to get

everything done for the 10 percent VAT rate before it was changed for the bigger deals. But, after that [endJune deadline passed], people shrugged their shoulders at it. It didn’t have the impact I expected.

“It’s a good move to reduce it,” he reiterated.

“The market is so hot, and there is so much money around, that the big buyers did not pay any attention to it, but in a slower market it would have had a bigger impact.”

The Minnis administration expected to raise just an extra $4m from the 12 percent rate, so many observers will likely argue that wealthy participants in real estate deals would not have been deterred by such a relatively modest increase - especially since buyer and seller are likely to split it 50/50. Each would have paid the equivalent of just

an extra 1 percent of the purchase price.

Still, Mr Christie said it was vital that The Bahamas remain competitive with rival jurisdictions such as the Turks & Caicos Islands, which is offering stamp tax holidays and other discounts in a bid to attract the same high net worth purchasers this nation is targeting.

“It’s a good signal to the world that we mean business,” he added. “It’s a good signal that The Bahamas is open for business, and we’re looking for high net worth investors to buy property.”

Mike Lightbourn, Coldwell Banker Lightbourn Realty’s principal, told Tribune Business the VAT adjustment was “helpful” but voiced surprise that it is being implemented. “Obviously I’m delighted but they’re going to catch hell

from their supporters,” he added.

“There were a couple of sales affected by it [going to 12 percent], as people had previously signed sales agreements, and they say that any change in that aspect, it specifies who pays.”

Many Bahamians believe wealthy foreign real estate buyers should be taxed more given their greater ability to afford it, and the current explosion in such sales, but realtors have frequently warned that any increases risk undermining this nation’s attractiveness in a highly competitive market.

Kwasi Thompson, former minister of state for finance when the 12 percent VAT rate was imposed, declined to comment on the Davis administration’s planned change when contacted yesterday.

ACCOUNTANT RAISES ‘FAVORITISM’ FEARS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday promised that all Bahamian accounting firms will have “a fair opportunity” to win public sector work after concerns were voiced over alleged government bias.

Michael Halkitis, minister of economic affairs, gave his commitment after Philip Galanis, the former PLP MP and Senator, accused the former Minnis administration of being “blatant” in handing the majority of government work to just one accounting firm he did not name.

The HLB Galanis & Company managing partner, referring to an earlier panel discussion during the Bahamas Institute of Chartered Accountants’ (BICA) Accountants’ week, said it was “critically important” that the Government “not be seen” as favouring companies perceived to be supportive of it politically.

And, referring to the much-publicised FTI Consulting report into the Bahamas Power & Light (BPL) “lipstick and makeup” allegations, he argued that it was “wholly unsatisfactory” that such an exercise was awarded to a foreign firm when there were numerous Bahamian companies available to do the job.

“Yesterday, on one of the panel discussions, one of

Philip Galanis the panellists made a a very important point that in successive governments there seem to have been preferred accounting firms used by the Government,” Mr Galanis charged.

“This was very blatant in the last administration, when there was only one accounting firm that got much of the work from the Government.” He did not name that company, but Tribune Business heard complaints at the time that EY (Ernst & Young) appeared to be

receiving most of the Government engagements, including the Bahamas Power & Light (BPL) and Water & Sewerage probes.

Mr Galanis, though, said the panel discussion raised concerns that something similar was happening under the newly-elected Davis administration as “the last two engagements provided by the Government went to another firm.” This appears to be a reference to Deloitte & Touche’s fiscal and BPL assignments, although again no name was mentioned.

“The panellist made the point that it’s critically important for the Government not to be seen to be encouraging preferred firms or firms that seem to be supportive of the PLP or FNM,” Mr Galanis added.

“The point I made yesterday was it was wholly unsatisfactory for the former administration, in my

opinion, to have engaged a foreign consulting firm to investigate the BPL matter, which was a travesty never reported on until the Government changed.”

Boosted by Mr Halkitis’ promise that the Government will hire Bahamian accounting firms, and spread that work around, Mr Galanis asked him: “I’m hoping you will ensure, and I’m sure you will ensure, but I’d like you to reiterate the commitment of the Government to be fair and balanced in its approach to accounting contracts.”

The minister, in response, said: “I can say unequivocally the Government has no preferred firms. Everyone will be given a fair opportunity to get work as we engage firms. Our preference will definitely be Bahamian firms.”

PAGE 4, Thursday, November 11, 2021

THE TRIBUNE

CIRCULATING SAND DOLLARS INCREASE SIX-FOLD IN VALUE THE value of Bahamian digital dollars in circulation has increased more than six-fold since it formally launched as the Sand Dollar in October 2020.

The world’s first Central Bank-backed digital currency, leading a race in which some 81 other countries have engaged, launched with just S48,000 worth of Sand Dollars in circulation. Some 1,800 digital wallets had been issued to consumers at that stage, and nearly 25 merchants had actively participated in the pilot.

Just a year later, the Central Bank said in a statement that those figures had risen to $302,785 worth of Sand Dollars in circulation, some 28,003 digital wallets and about 845 participating merchants.

John Rolle, the Central Bank’s governor, said: ““The Sand Dollar is a crucial part of The Bahamas’ efforts to further the country’s economic and social progress. I am grateful for the international recognition of the Project Sand Dollar (PSD) achievement, as it validates the hard work of the Central Bank’s development team, consultants and stakeholders, such as members of the financial services and banking community, all of whom played an integral role in the design and architecture of the Sand Dollar.

“However, on this first anniversary of the Sand Dollar, it is important to

give an account of what we achieved and highlight that so much more still needs to be done. To achieve the aims of PSD (Project Sand Dollar), the Central Bank and partner agencies must forge a seamless Sand Dollar ecosystem that will achieve the highest productive utilisation.

“We have to achieve a degree of functionality that will attract all stakeholders and potential beneficiaries to get on board, and rightfully expect Sand Dollar to improve the ease of their money transactions.”

Sand Dollar is legal tender in the The Bahamas and can be used for all traditional cash-based transactions. The Central Bank viewed its creation a a necessary step in addressing the need for commerce to take place on a level playing field across the geography of The Bahamas.

With many islands now lacking a physical commercial bank presence, businesses and consumers find holding deposits and effecting payment transfers challenging due to transport, tracking, accounting, security and cost challenges.

Many persons living in The Bahamas are still ‘unbanked’, meaning they do not have bank accounts.

Mr Rolle said the Sand Dollar is vital to the muchneeded modernisation of The Bahamas’ digital payments capabilities by increasing transaction

John Rolle efficiencies and reducing service delivery costs.

“Sand Dollar is intended to provide non-discriminatory access to payment systems without regard for age, Immigration or residency status nationwide,” Mr Rolle said. “In disaster recovery, when cash may be inaccessible, a digital payment system is essential.

“Equally important, the Sand Dollar aims to further enhance The Bahamas’ reputation as a reputable financial jurisdiction in a world that is constantly challenged to guard against the infiltration of cash proceeds from illicit international trade, such as drug trafficking.

“We are not resting on our laurels,” Mr Rolle added. “In order for the Sand Dollar to function optimally in achieving set and evolving goals, we have to create a seamless ecosystem of stakeholders and beneficiaries - the Bahamas government, Central Bank, supervised financial

institutions and the general public.

“In a world going cashless and digital, the Sand Dollar is crucial to ensuring equitable economic participation in communities across our archipelago. A recent statement to the press from the Exuma Chamber of Commerce underscores a vital issue - the gradual shrinking of physical banking infrastructure.

“The Chamber president spoke of the “devastating” impact the island of Exuma is experiencing from losing “two-thirds” of its bank branches. We understand this as a call foremost for the payments and transactional services that banks provide, and which must be extended more to the reach of the Family Islands in an affordable, efficient fashion. It has to be through digital financial inclusion.”

Outlining the progress made since the Sand Dollar launched, Mr Rolle explained: “Although ready for use, the PSD technology had to first be tested via Central Bank application within our system. This also allowed us to continue to harden our cyber security protections before the user base became too numerous.

“It also allowed us to make progress with the Automated Clearing House (ACH) integration, which is also dependent on the nearly completed systems upgrade within each commercial bank. Also essential to the PSD ecosystem is a

distribution channel facilitating public access to Sand Dollar trade.

“To this end, the Central Bank of The Bahamas authorised qualified financial institutions (AFIs), private companies offering digital payments,” he added.

“We were successful also in moving away from the restricted geographical space of the pilot, as these communities were out of direct in-person reach. Hence the ‘limited’ experiences around achieving interoperability of AFI platforms were developed in New Providence.

The pilot process enrolled users with cards and was able, therefore, to impose geographical restrictions because it was an in-person process.”

The Central Bank outlined other achievements for 2020-2021, listing these as: * Final regulations to mandate interoperability and other technical standards, essential to unrestricted consumer choice of service providers * A capability to process mass payment distributions, which could be an attraction for charities or businesses still using cash for payroll. * Deployment of tokenised enrollment for AFI proprietary wallets, and for the Central Bank branded wallet.

This positioned the system to accommodate

online enrollment for Central Bank digital currency accounts. * “Tremendous progress” in enrolling government payments. The Governor praised the increasing government/public sector support for the use of the Sand Dollar, as the national government is the greatest disburser of funds in terms of wages, pensions and social assistance payments. * Progress in integrating with the ACH, so merchants can deposit their funds directly to a commercial bank account. However, users also need to top up conveniently through their bank accounts, which is still being developed with the ACH as a feature.

Several banks are already processing payments using the customer-initiated bank transfers (CIE) format.

Others are expected to convert to this format by the end of 2021.

Sherwin Hilton, general manager for The Bahamas Automated Clearing House (BACH), said the agency continues to work in collaboration with the Central Bank to test the Sand Dollar interface.

The upgraded messaging format for the CIE platform has been successfully configured by commercial banks, and the Sand Dollar platform has executed endto-end testing successfully with a participant commercial bank.

SEE PAGE 5

SANDALS ROYAL BAHAMIAN TO BE ‘RESORT LIKE NO OTHER’ SANDALS’ executive chairman has pledged that its Royal Bahamian property will be “a resort like no other” when it re-opens on January 27, 2022, with 1,050 staff.

Adam Stewart was at the property recently to motivate returning staff and new recruits as it ramps up preparations for its re-opening.

Alongside the multi-million dollar renovations, Sandals

is making progress with both recruitment and training as it prepares to re-open a resort that has been closed since the COVID-19 pandemic began.

In a session attended by the Sandals Resorts International chief, and chaired by the resort chain’s senior management and executives, Mr Stewart said: “I want to use this opportunity

to officially welcome you to the ‘World’s Best Team’team Sandals.

“Having witnessed the progress of the renovations, I can tell you all that the reimagined Sandals Royal Bahamian and all its new features is going to be the most exquisite resort in this country. The reopening of Sandals Royal Bahamian will be magical and I’m looking forward to all of us growing and evolving together.

“Any company that is growing is a company that provides opportunities, and those opportunities are for you to seize.”

Mr Stewart continued: “My family and I have a love affair with the islands of The Bahamas; there is nothing quite like this country. We made the decision to keep this resort closed so that we could invest in it, and invest in this country, as we wanted to ensure that when we stand the test of time for the next 20 years, we have a resort like no other.

“As a company we promote brand Bahamas using various marketing strategies from traditional to new media, as this is a partnership between you and our organisation.”

Mr Stewart spoke at one of several orientation sessions where new and returning team members will be “Sandalised” – preparing them to effectively and confidently deliver the company’s service standards as they gear up for a full return to work.

Philippa Adams, a returning laundry department worker, said of the impending re-opening: “I would scream right now, but that may not be appropriate.

I’m overjoyed that the resort will be reopening in January.

“The orientation sessions have been so empowering and refreshing, and have given me a major boost in confidence. The sessions are furnishing us with all the tools we need to get back to work and execute at an optimal level.”

Orientation began on November 1 and will last until November 26.

Using technology and new training mechanisms, the orientation sessions are being held in phases to comply with COVID-19 health and safety protocols.

They are using a combination of face-to-face sessions and virtual courses on Sandals’ Learning Management System (LMS).

Dr Phillip Brown, Sandals’ director for learning, development and service standards, said: “As a team, we pride ourselves on innovation. As the company forges ahead, we elevate our systems to incorporate new ways of ensuring our Sandals standards are maintained, our guests’ expectations are exceeded and our team members are fully equipped for success.

“During these phased training sessions, team members will be exposed to our company’s worldrenowned service standards, our ethos of community involvement, particularly through our Sandals Foundation, and also the myriad of personal development opportunities through our Sandals Corporate University.”

Dr Brown is part of the company’s training team that is on the ground at Sandals Royal Bahamian.

We have the appliances you need, to get you cooking in the kitchen of your dreams.

LET’S GET COOKING

Sales & Full Service Department

T: 322-2188/9

456-7423

www.geoffjones242.com

THE TRIBUNE

Thursday, November 11, 2021, PAGE 5

COMPANIES URGED: MONITOR NEW GOVERNANCE DERMANDS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A BAHAMIAN accountant yesterday urged local companies to get on board with growing environmental, social and governance (ESG) awareness and develop strategies necessary to adapt.

Kevin Cambridge, advisory partner for Pricewaterhouse (PwC)

Bahamas, told Bahamas Institute of Chartered Accountants (BICA) members that it was key for business to adjust to modern workplace technology advances and the “disruption” it has caused the middle class.

“What comes out of the ADAPT framework is five shifts. Those shifts relate to ESG and, sustainability, rapid digitisation, the agile business models, resilient supply chains and

workforce transformation,” he said.

COVID-19 resulted in such transformation “accelerating”, and caused PwC and its clients to look at “up-skilling” especially with regard to digitisation. With the work and social landscape “dramatically changed”, Mr Cambridge added: “It goes without saying that the social landscape has dramatically changed in terms of social networks, and they’re stronger than ever.

“In terms of this digital age, organisations are looking really closely at their social character and the way they are reflected in terms of the way they do business. In terms of governance, we’re no strangers to governance as accountants. The ESG revolution will drive that and make it even more heightened.

“We use the example of multilateral funding agencies. So if you look at what’s going on, particularly with the IDAs or international

donor agencies, they will focus - and continue to focus - on demanding and requesting to see elements of an ESG strategy.”

Heightened awareness of an ESG strategy is “on the rise” in The Bahamas. Mr Cambridge said he had been dealing with private banking clients who are under pressure from shareholders on formulating an ESG strategy.

“So PwC’s latest agenda focuses on what we call the new equation. In essence,

DOCTORS HOSPITAL IN COVID TURNING POINT

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

DOCTOR’S Hospital has seen a turning point in the battle against the latest COVID-19 wave as nonpandemic related patient admissions are starting to increase, it was disclosed yesterday.

Dr James Iferenta, director of emergency medical services at Doctor’s Hospital, told Bahamas Institute of Chartered Accountants

(BICA) members: “We’ve had to mobilise all facilities, we had to come alongside and be supported by the Government in our ultimate facility.

“We’ve had to change the rules on access, increase testing straight across the board, push for no tolerance PCR-positive for any of our elective procedures.

We’ve seen overwhelming of our emergency facilities.

So it’s been a very difficult time for us.”

Dr Iferenta added: “We are thankful that the vaccine is here, and that

persons are now taking advantage of vaccination, which is the real tool that we really have to support the community with the control of COVID.” Non-COVID-19 patients have been coming back to the emergency room, and he said: “We’re thankful for that. We hope that that will go through the festive season.”

Asked when elective care procedures will be made available at Doctor’s Hospital, Dr Iferenta added: “We have developed an ambulatory care centre on Collins

CIRCULATING SAND DOLLARS INCREASE SIX-FOLD IN VALUE FROM PAGE FOUR Looking toward the next steps in the Sand Dollar roll-out, Mr Rolle said: “Now the push is to enable more businesses to become connected. For the Family Islands, it will be a zealous drive targeting entire communities. Necessary also is to gradually improve the interface between government agencies and the general public. This process is expected to speed up over time.

A mobile wallet is considered interoperable if it can send and receive Sand Dollars directly to and from another, without restriction and irrespective of the e-wallet developer.

“Still in the refinement process, this connectivity of wallets and with the commercial banks is intended to make money payments and transfers easier and safer for merchants and customers engaged in trade,” said Mr Rolle.

“We will push ongoing public education to enhance buy-in. On the proactive side, we will implement the idea of a ‘Sand Dollar Academy’, purposed to build up training resources for businesses and financial institutions. This is sorely needed. It would serve to curate and create learning materials; and sponsor live training sessions. Something of this nature could be in operations by the 2022 first quarter.”

Mr Rolle continued: “Properly managed, Sand Dollar and other digital currencies can fix or improve many of the most troubling issues of the physical cash trade,

including counterfeiting, fraud, money laundering, especially cross-borders, as well as the risks to personal safety of robbery and identity theft. This digital form of Bahamian legal tender, the Sand Dollar, helps to strengthen our personal and national defences.

“At the same time, it puts more opportunities within reach of micro and small businesses within our archipelago that have not yet transitioned to non-cash means payments. Yet this often is the only means by which the tourists spend within our economy, and it is the route by which our entrepreneurs will tap into e-commerce.”

CALL 502-2394 TO ADVERTISE TODAY!

Avenue to try to assist the patients and physicians, and to relieve the anxiety and the pressure of coming

into the actual hospital environment.”

Dr Nikkiah Forbes, director of the National HIV/

it’s people hard-wired to find solutions, and wired with the latest technology,” he added.

“The new equation really focuses on two elements; people and technology. When you look at technology and digital transformation, you basically are going down the wrong path if you don’t realise that it’s equally important to move your people and change management in lockstep with the technology.”

AIDS and Infectious Disease Programme, called for more vaccinations and warned that COVID-19 may be with the world “for another five years” given how global pandemics have trended in the past.

PAGE 6, Thursday, November 11, 2021

PORT’S PROFITS TO DECLINE 7% DESPITE PRE-COVID BOUNCE FROM PAGE ONE volumes would start to recover to pre COVID-19 levels in the first quarter (January to March) of 2022.”

APD, which is estimated to handle around 90 percent of all freight imported to New Providence, is a good indicator of how the overall Bahamian economy is performing given the link between import volumes, consumer demand and the level of construction/ foreign direct investment (FDI) activity taking place.

The company’s annual report revealed that both revenues and profits for the three months to endSeptember 2021, which represents the first quarter in a financial year that closes at end-June 2022, were ahead of projections by double digit percentages.

“Our net income is currently 56 percent or $741,664 over budget as of September 30, 2021.This is mainly attributed to an increase in terminal handling fees and stevedoring

fees associated with cargo projects during the year,” APD management told investors.

It cited the Nassau Cruise Port and downtown redevelopment; the US Embassy; GoldWynn Condo-Hotel and Residences; The Pointe; Sandals’ Royal Bahamian renovations; Albany and the Hurricane Hole marina as examples of construction/FDI projects that have underpinned import volumes passing through the Arawak Cay-based port amid depressed consumer demand.

“Management remains extremely conservative, and yet optimistic, on the Atlantis Royal Towers renovations, South Ocean resort and the Palm Cay project. Due to COVID19 our financial year 2022 budget assumed container [volumes] would trend below the pre COVID19 volumes until at least first quarter 2022,” APD’s annual report added.

“Total market volumes have decreased because of

COVID-19, and are estimated to be around 127,000 TEUs (twenty-foot equivalent units) for 2022 or 1,066 TEUs under the 2021 budgeted volumes of 125,934 TEUs. Our total revenues for the period ended September 30, 2021, are over budget by approximately $689,059 or 10 percent.

“Total expenses for the period ended September 30, 2021, were under budget by $465,588. The total revenue increase was largely attributable to an increase in terminal handling and stevedoring fees associated with cargo projects.

Total expense decrease was mainly attributed to a reduction in actual spending versus budget for the period.”

Striking a more optimistic tone, APD added: “By the end of the fiscal year [2021, it was evident that the wheels of the Bahamian economy had begun to turn and re-opening was picking up speed.

“If it can maintain this momentum, and if the Budget measures the

Government announced in June take effect, we can cautiously anticipate a recovery in APD’s import volumes by the end of the calendar year, going into the first quarter of next year.”

It continued: “We are pleased that first quarter financial year 2022 bulk aggregate numbers are up by about 18 percent over budget, driven primarily by the project cargo that comes in and tonnage in non-containerised cargo, which included heavy equipment and materials such as sheet piles that are being used for the Nassau Cruise Port’s $250m transformation project.

“The hotels have now committed to opening up for the winter season. In all likelihood, this will influence suppliers like Bahamas Food Services (BFS) and members of the Bahamas Wholesalers Association to increase volumes to supply those resorts.”

The APD annual report said no Board decision had been taken on dividend

payments for the 2020-2021 financial year, the last such capital return to shareholders having taken place in December 2020.

Turning to the company’s performance for the year to end-June 2021, it added: “Nassau Container Port processed 118,962 (2020: 129,694) inbound/ outbound TEUs. This represents an 8 percent decline in container volumes under 2020 volumes of 129,694 TEUs. “Our volumes are approximately 17 percent below our 2019 pre COVID-19 volumes of 131,734 TEUs. In the 2021 financial year, APD exceeded budgeted net income projections. Budgeted net income was $5.831m while actual net income for 2021 was $6.672m, which is $840,833 or 14 percent more than budget.

“The Company’s total revenues for 2021 were $28.775m (2020: $31.16m), which is $2.385m or 8 percent lower than the prior year. Net income for 2021

VAT REFORMS TO CAP ‘HUGE’ REFUND LIABILITY FROM PAGE ONE

situation were the Freeport Container Port, Freeport Harbour Company and the Statoil oil storage terminal. The Container Port is jointly owned by Hutchison Whampoa and Mediterranean Shipping Company (MSC), while the Hong Kong-based conglomerate is partners with the Grand Bahama Port Authority (GBPA in the Harbour Company.

The Government’s VAT refund-capping move involves the elimination of “zero rating” treatment for “services relating to the use of terminal or berthing facilities by commercial vessels in respect o goods” that have not been cleared for domestic consumption and “where the port of origin

and the port of destination are not within the territory of The Bahamas”.

Similarly, “zero rating” treatment is also to be ended for “services in respect of the storage of goods, and any processes to optimise or maintain the integrity of those goods during storage”, where they have again not been cleared for domestic Bahamian consumption and the “port or origin and port of destination” are not in this nation.

These reforms are clearly focused on the transhipment, logistics and break-bulk sectors, while the Government is also seeking in the VAT (Amendment) (No.2) Bill tabled in Parliament yesterday to narrow the “zero rating” treatment afforded

to “international transport services”.

In particular, it is eliminating VAT “zero rating” - which enables companies to avoid paying the tax on their input costs, while also escaping having to levy it on their consumers - for private aircraft and ships, including planes and ships that are chartered and “leave port in ballast”.

The Bill, which indicates the rate cut from 12 percent to 10 percent is intended to be permanent rather than last for a year, also restores the “zero rating” treatment for financial services provided to The Bahamas’ international clients.

Mr Wilson said this was designed to boost the industry’s competitiveness by enabling it to recover its

VAT input costs, thereby reducing its tax burden.

As for the transhipment-related reforms, the Ministry of Finance’s top official said these were designed to bring The Bahamas back into line with international best practices on VAT treatment for the sector.

Mr Wilson said such services should be VAT ‘exempt’, meaning that while no tax is levied on the end user, companies in the sector are unable to recover what they have paid on their input costs. Suggesting that the Minnis administration had strayed away from this, he added: “Some time, I guess after 2017, the Government made transhipment services zero-rated.

“There are only two companies that benefited from it being like this.....The companies are not selling services. They are transhipment services. They are not taxable supplies, but they’re generating huge refunds and that’s not the way VAT should work.”

VAT refunds, or credits, are typically owed by the Government to a tax-paying company if it is exporting goods and/or services, and is thus zero rated, or if the tax paid on its inputs exceeds what is received from consumers on its sales.

“In the case of this one company, they offer transhipment services but that is not where the bulk of its revenues are generated,” Mr Wilson explained. “By changing the definition slightly, it made the bulk of its revenues zero-rated, even though” it was not generating taxable activity in The Bahamas.

He added that the Government had received legal advice, both before and after the September 16

general election, to back the reforms now contained in the VAT Bill. Describing the VAT refunds owed to the two companies as “huge, huge”, Mr Wilson said: “We’re not talking a couple of million dollars. It’s huge refunds that have been generated in the system....

“A couple of companies were generating the bulk of the VAT refunds even though they did not earn taxable supplies; they are not in business in The Bahamas. They’re doing transhipment. They are not in the Customs area. We don’t collect any revenue from there. If you look at the export statistics, they’re not involved in any of that business.

“They’re outside the economy for all intents and purposes but generating huge refunds. It distorts the tax system, the VAT system, as you can imagine you are taking VAT income from taxpayers and giving it to companies who, because of technicalities, are able to get refunds even though they are not earning taxable supplies,” Mr Wilson added.

“The business they’re in doesn’t generate outputs.

“It needed to be cleaned up in the Act or it would have created a major problem going forward because those refunds would continue to grow in size. It will continue to grow. I know the refunds are significant.

They are significant.”

One well-placed source, speaking on condition of anonymity, confirmed that the Government “owes Buckeye a substantial amount of money in past due VAT refunds” and needed to cap this before the situation got out of hand.

“It’s a good way to bring in some quick cash,” they

THE TRIBUNE

totaled $6.672m (2020: $7.23m) or 8 percent lower than the prior year.

“Our Direct Operating Margin (DOM) for 2021 was 51 percent (2020: 50 percent). Our budgeted DOM for 2021 was 49 percent. For the period ended September 30, 2021, our DOM is 56 percent, which is 11 percent more than our budgeted DOM for the same period.”

Breaking down import volumes by category, APD said: “Bulk car volumes of 8,694 were 173 or 2 percent more than 2021 budgeted car volumes of 8,521. This resulted in revenues of approximately $1.649m from landing and security fees for vehicles.

“Additionally, revenues from storage fees were approximately 49 percent over budget during financial year 2021. Stevedoring revenue was over budget by $206,596 during financial year 2021, mainly attributable to project related cargo.”

said. “It’s a smart policy.

It’s going to be interesting to see how this turns out. I don’t think the Container Port is going anywhere, and I don’t think Buckeye is going anywhere because of its substantial investment.

“I think they’ll suck it up and, if they get push back from initiating increased fees, they’ll introduce VAT inclusive pricing so the clients will not know any better.”

Mr Wilson, meanwhile, revealed that the financial services industry’s “zero rating” treatment has been made retroactive back to 2019 so that “liabilities are erased” from when the former Minnis administration altered the sector’s status to “exempt”.

“What happened in 2019 was that they moved financial services to ‘exempt’,” he explained. “The financial services industry could not recover the tax paid on their inputs. They made specific representations to the Government to put them back into the zero rating category, specifically the small boutique firms who are purely financial services with no domestic operations.

“By being ‘exempt’ it increased their cost of operations in The Bahamas. The Government considered their case and put them back to zero rated. It’s backdated two years to deal with the considerable liability.

For any of those firms the liability is erased.”

Mr Wilson said the reforms will also bring The Bahamas into line with established practice for financial services globally, especially since the industry is a services exporter typically.

THE TRIBUNE

Thursday, November 11, 2021, PAGE 7

CHANGE LAW SO STAFF PAY FOR COVID TESTS FROM PAGE ONE the Trades Union Congress (TUC) president, he said the Act was 20 years or “more than a generation old” and never contemplated the impact from a COVID-19 style pandemic on the economy and workplace.

Mr Sands also revealed that his employer, Baha Mar, has spent $2.8m todate on COVID testing for both guests and staff. It had conducted some 280,000 tests so far, with 160,000 involving guests and 120,000 for its workforce.

The costs, he added, were broken down as $1.7m for guests and $1.1m for staff tests.

“This is extremely important because across the resort campus over 90 percent of guests arriving at Baha Mar are fully vaccinated,” the BHTA chief said. “I can tell you that 65 percent of staff have one or two doses, and 58 percent of associates are fully vaccinated. That’s 58 percent of 4,000 associates.

Turning to the Health and Safety at Work Act, which was passed into law almost two decades ago, Mr Sands said: “When this Act was introduced, no one had an idea that COVID would be a pandemic that would have this dramatic impact on the community.

“And I strongly urge the parties to be to support the local business community to encourage government and the unions to look for two amendments in this particular section: Section 4 (1), which speaks to reasonable protection, which is not clearly defined in this particular Act, which needs to be assessed.

“Then, secondly, Section nine, which says that a person should not impose a charge on the interest in the safety of the well-being of a company. I think that that should be amended. I think that that particular clause should be removed, if not for 100 percent of companies, at least for companies that have persons in excess of ten to 25 (people), because that is a cost that can go toward hiring additional people and making the company more productive.”

Obie Ferguson, the Trades Union Congress (TUC) president, rejected the notion of amending the legislation without it coming to the National Tripartite Council for consultation. He said: “What the private sector and even

Mr Farquharson added: “Section seven of the Act puts the onus on the employer to make sure their health is not compromised. Essentially, an employer should not lie or give incorrect information when it comes to health and safety when it comes to their workers and the business.”

Turning to section nine, Mr Farquharson acknowledged that when

Obie Ferguson

Robert Farquharson the public sector are doing is they are operating within themselves.

“We have a number of unions in this country, and at no time have they sent a letter inviting the unions to be a part of a resolution to the issue at hand. We seem to be relevant when there’s a crisis and that is a major problem we have.

“If you are trying to deal with an issue, that is a very sensitive issue, that is a legal issue, would not the unions, particularly those unions who are directly impacting the tourists and the Bahamian public, shouldn’t we be invited and be a part of that process?”

Warning against mandatory COVID-19 vaccinations, Mr Ferguson added: “To put the needles in the arms, you are doing something completely outside of the law. You can’t

impose vaccinations as a condition to employment.

“You can introduce your test and make that a condition as a policy, and even there that would have to be discussed with the working people. The law is clear, you can’t do it. You just cannot do it.”

Robert Farquharson, director of labour, added: “I, too, want to echo the sentiments of Mr Ferguson. I want to draw your attention to Section 4(1) of the Health and Safety at Work Act, which says it is the duty of every employer to ensure so far as it is reasonably practical, the health and safety and welfare of all.”

Moving to Section five of the same Act, he said this imposes a “duty of care” on employers to ensure none of their employees are exposed to any risk to their health and safety.

the Act was crafted it was not envisioned that there would be a global pandemic that has impacted the way people work and live.

But he stopped short on agreeing it should be amended, and reminded attendees there should be “no contravention” of it as it stands now. “The ILO convention said there must be consultation with international standards when it comes to the issues that

affect workers,” Mr Farquharson said.

“The NTC (National Tripartite Council) is considered a forum for labour and industrial relations in The Bahamas. To this date the NTC has not been invited by the employer or any of the major hotels to consult with them on the issue of charging for testing.”

PAGE 8, Thursday, November 11, 2021

TARGET ‘IDEAL’ 50% DEBT-TO-GDP RATIO FROM PAGE ONE soon exceed the economy’s output and size given that the debt-to-GDP ratio currently stands at 99.5 percent.

The Central Bank previously revealed it had already reached this level, standing at 100.4 percent at end-June 2021, and Mr Sumner yesterday unveiled data from the regulator showing that debt repayments are expected to near-triple to $1.519bn in 2022.

He also produced figures showing The Bahamas’ foreign currency debt had quadrupled in just nine years between 2012 and 2020, with the deterioration accelerating towards the end due to Hurricane Dorian and COVID’s

devastating impact on the public finances.

Foreign currency debt jumped from $1.043bn in 2021 to $4.031bn in 2020, with the latter number only likely to have further increased. “That number has pretty much quadrupled from just over $1bn to just over $4bn over a nineyear period,” Mr Sumner added.

As for The Bahamas’ debt-to-GDP ratio, this had increased over the same period from 46.7 percent in 2012 to 99.5 percent in 2020. “The national debtto-GDP ratio has gone from 47 percent in 2012 to nearly 100 percent in 2020,” the former Chamber chief executive said. “That is not a small number, and the Government has to implement a lot of serious

strategies to tackle that level of debt.

“Those numbers are very telling, and the way we respond to that is going to be very critical for future growth outlook and success of the country...... I think that the current levels [of debt] are not sustainable because if we increase our debt by a few hundred million dollars we will be upside down on the debtto-GDP ratio.”

That will mean The Bahamas’ national debt is bigger than the size of its economy - a point that may have already been reached.

Mr Sumner acknowledged talk that The Bahamas was now perched precariously on the edge of a “fiscal cliff” due to the debt and deficit blow-out produced

by COVID-19 and Dorian, which had further worsened

an already-troubling situation.

“One of the things we have to look at is this idea of improvement in our debt-to-GDP ratio,” he added. “For The Bahamas it should be less than 50 percent. We saw that ratio in 2012, at 47 percent.

That was a very manageable level, and if we work to get back to that we will be doing well.”

A 50 percent debt-toGDP ratio is one of the targets mandated by the Fiscal Responsibility Act. However, The Bahamas is presently as far away as it is possible to be from that benchmark, with the former Minnis administration projecting that it will not be hit before the next decade in 2030-2031. Many observers, though, are likely to feel it will take much longer than that.

Mr Sumner yesterday drew on Central Bank data that showed debt repayments and servicing costs will hit around $600m this calendar year before peaking at $1.519bn in 2022 - a near year-over-year tripling. A further $1.117bn was due in 2024, while debt

THE TRIBUNE amortisation was projected to also peak at $1.093bn in 2022.

The former Chamber president argued that the Government “ought to cease issuing debt” in the local capital markets at interest rates three to four percentage points higher than Bahamian Prime, asserting that this was akin “ to shooting ourselves in the foot” because of the higher debt servicing costs that are imposed.

However, given the increased risk and costs associated with Bahamian government debt due to the weak fiscal position and repeated sovereign credit downgrades, it is difficult to see how demand for its paper would be stimulated with such low compensation on offer.

Still, Mr Sumner backed the Davis administration’s decision to set a 25 percent revenue-to-GDP target, and called on it to divest and sell-off state-owned enterprises (SOEs) such as the utility companies, Bank of The Bahamas and aviation entities such as Bahamasair and Nassau Flight Services.

However, Deepak Bhatnagar, a key adviser to former prime minister Perry Christie, argued that “there’s really not much to

divest at this time” - a reference to the troubled state of many SOEs and the fact they would likely realise only rock bottom prices in any privatisation.

Pointing to the Government’s unfunded multi-billion dollar pension liabilities, he added that “nothing has happened there” for 20 years but it was “where a big problem lies”. Mr Bhatnagar said: “Unless the people of The Bahamas are committed to some austerity measures, it will be very difficult to bring the finances in order.

Pensions are a very big bill and non-contributory so far.”

Mr Sumner had earlier suggested imposing “a luxury tax” on the cruise industry on the basis that it “benefits a lot more than we do” from its activities in The Bahamas, with relatively few passengers disembarking the ship in Nassau and Freeport.

Mr Bhatnagar, though, voiced scepticism that this would be achieved, saying: “The country is at the mercy of the cruise ships. We try to raise fees, but every time we do that they threaten to leave.” Mr Sumner, though, argued that efforts to extract more from the cruise industry should still be made.

THE TRIBUNE

Thursday, November 11, 2021, PAGE 9

REAL MEDICARE DRUG SAVINGS IN DEMS’ BILL — BUT NOT OVERNIGHT

By RICARDO ALONSO-ZALDIVAR Associated Press

WASHINGTON (AP) — Medicare enrollees who take expensive medicines could save thousands of dollars a year under the Democrats’ sweeping social agenda bill, but those dividends won’t come overnight. Instead, they’ll build gradually over the decade.

Unveiled late last week, the bill’s Medicare prescription drug compromise barely survived a pharmaceutical industry lobbying blitz. Experts who’ve analyzed the complex plan say it would also offer people with private insurance some protection from the escalating cost of their medicines.

“The gist is that this is going to create substantial savings for seniors and taxpayers,” said Leigh Purvis, director of health care costs research at AARP’s Public Policy Institute. “This is going to reduce the price of expensive and widely-used prescription drugs, and that has an impact for everyone.” The institute is the policy arm of AARP. The group’s advocacy operation played a leading role lobbying in favor of restraining drug prices.

If the legislation passes, savings would be concentrated among patients with serious chronic illnesses such as cancer, diabetes, multiple sclerosis and rheumatoid arthritis, along with those who take combinations of costly medicines to try to control accumulating health problems.

The first tangible benefits would take about a year to show up. In 2023, the bill would impose a check on annual price increases for established drugs, as well as cost limits meant to keep insulin affordable. A huge development would follow in 2024: the first-ever cap on out-of-pocket costs for nearly 50 million seniors in Medicare’s Part D pharmacy drug program.

A year later, the health policy centerpiece of the legislation would go live.

Seniors would see the first fruits of Medicare’s negotiations with drug companies, for no more than 10 medications to start with, but no numerical limit on negotiated prices for insulins.

Democratic campaign strategists hoping for a quick political hit for next year’s midterm elections may be disappointed. Terms and conditions for Medicare prescription drug plans for 2022 are already set, so

immediate changes would have risked disruptions.

“It takes a while to implement these policies,” said Tricia Neuman, a Medicare expert with the nonpartisan Kaiser Family Foundation.

“I don’t think consumers will see much of an impact before the midterms.”

The following timeline for the rollout of the drug provisions is based on interviews with experts at the Kaiser Foundation, the AARP Public Policy Institute, the Brookings Institution, and Patients for Affordable Drugs, as well as checks with the Democratic staff of the House Ways and Means Committee.

In 2023, the bill would impose penalties on drug companies that raise the prices of established medications above the rate of inflation, a common pattern most years. To discourage cost-shifting to people with private insurance, the penalties would take into account prices charged to them as well.

For Medicare recipients whose cost-sharing is based on a percentage of a drug’s price, what they pay out-ofpocket would not rise faster than inflation.

In addition, Medicare enrollees with diabetes

will get the benefit of $35 monthly copays for all insulin products covered by their particular prescription plan. People with private insurance will have access to $35 copays for at least one insulin product of each type and dosage.

The $35 insulin copays could save hundreds of dollars for some patients.

Starting in 2024, people on Medicare will finally get a limit on what they pay out

of their own pockets for medications. That standard feature of private insurance is currently missing from the program.

Medicare’s cap would be set at $2,000 a year, and the Kaiser Foundation estimates more than 1 million seniors currently have costs above that level, averaging about $3,200 in 2019.

Among them is David Mitchell, president of the advocacy group Patients for

Affordable Drugs. Battling multiple myeloma, Mitchell says one of his cancer drugs alone costs him $15,000 a year through Medicare. “If you happen to be in that group —like me— this is a big deal,” said Mitchell.

Eventually Medicare patients will be able to space out their outof-pocket payments in manageable increments, a consumer-friendly feature called “smoothing.”

PAGE 10, Thursday, November 11, 2021

THE TRIBUNE

Hot inflation report slams bond market, sends stocks lower

By DAMIAN J. TROISE AND STAN CHOE AP Business Writers

A sign for Wall Street is carved in the side of a building on Nov. 5, 2020 in New York. Stocks are off to a weak start on Wall Street Wednesday, Nov. 10, 2021, pulled down by losses in big technology companies.

Photo:Mark Lennihan/AP

NEW YORK (AP) — An eye-opening report on inflation that was hotter than expected slammed into the bond market on Wednesday, sending yields jumping and helping knock stocks lower.

Prices for beef, electricity and other items that consumers paid in October surged from year-ago levels at the fastest overall pace since 1990, raising expectations that the Federal Reserve will have to hike short-term interest rates more quickly off their record low. That sent

Treasury yields to their biggest gains in months.

Rising yields tend to be a drag on stocks, particularly those seen as the most expensive or whose expectations for big profit growth is furthest in the future.

Drops for several highgrowth tech stocks weighed on Wall Street, as did a slide in energy stocks following a decline in the price of crude oil.

The S&P 500 lost 38.54, or 0.8%, to 4,646.71 for its second straight drop. It's coming off a strong run where it set a record high in each of the prior eight days.

The Dow Jones Industrial Average fell 240.04, or 0.7%, to 36,079.94.

The Nasdaq composite, which has more tech stocks, dropped more. It lost 263.84, or 1.7%, to 15,662.71.

Worries about inflation stoked other areas of the market. Gold rose 1% and is close to its highest price since June. Bitcoin, which some proponents see as offering similar protection from inflation as gold, likewise climbed. It touched a record of nearly $68,991, according to CoinDesk.

The center of Wall Street's action, though, was in the bond market.

Pushed by the inflation report, investors are now pricing in a 66.5% chance that the Fed will raise rates by the end of June. A day earlier, that probability was at 50.9%.

The Fed has been keeping overnight rates at a record low of nearly zero since March 2020 to resuscitate markets and the economy from the pandemic. It has already begun to pare back on the bond purchases it makes every month to keep longer-term rates low.

The two-year Treasury yield tends to move with expectations for Fed action, and it leaped to 0.51% from 0.41% late Tuesday, a significant move.

Longer-term Treasury yields also rose, with the 10-year yield up to 1.57% from 1.43%.

In the stock market, higher yields tend to favor stocks that look cheap, or at least cheaper than their peers. These are often called "value" stocks to distinguish them from stocks of high-growth companies.

"It's a fight between growth and value, and

neither one is really getting the upper hand lately," said Tom Martin, senior portfolio manager with Globalt Investments. "You're going to have a decent market until year end and at some point, you'll see folks really starting to try to position themselves for what they think 2022 could look like."

Drops for some highgrowth and tech stocks caused the heaviest weights on the market because they're among the bigest companies by value. Nvidia, Facebook's parent company, Google's parent company, Apple and Microsoft all fell between 1.5% and 3.9%.

A 3.3% drop in the price of U.S. oil also helped to drag energy stocks to the biggest loss among the 11 sectors that make up the S&P 500.

But nearly two out of five stocks within the index nevertheless rose, with gains for health care stocks and others helping to limit losses for the market. Pfizer rose 3.6%.

Tesla also regained some of its lost ground from the prior two days after its CEO, Elon Musk, said that he would sell 10% of his stake in the company.

It rose 4.3%, though it remains down 12.6% for the week.

Rivian Automotive, an electric truck maker backed

by Amazon and Ford, glided 29.1% higher in its first day of trading.

Stocks have been rising broadly in recent weeks, powered by reports showing corporate profits were even stronger during the summer than analysts expected. Many of those reports showed that companies were able to pass on the higher prices they were paying to their customers, preserving their profitability.

DoorDash rose 11.6% after reporting strongerthan-expected revenue for its latest quarter and announcing that it is buying Finnish delivery service Wolt Enterprises, expanding its reach into Europe and other markets.

This earnings season is wrapping up, with more than 90% of S&P 500 reports already in hand. But several big names are still to come, particularly in the retail industry.

THE TRIBUNE

Thursday, November 11, 2021, PAGE 11

BIDEN: INFRASTRUCTURE BILL WILL EASE ECONOMY WOES, JUST WAIT

By JOSH BOAK AND COLLEEN LONG Associated Press BALTIMORE (AP) — President Joe Biden touted his $1 trillion infrastructure plan Wednesday as an eventual fix for the nation's inflation and supply chain woes -- if Americans just have the patience to wait for the construction to begin.

The president toured the Port of Baltimore at the start of what is likely to be a national tour to showcase his signature legislation that cleared Congress last week and that he intends to sign on Monday. He declared that the spending would improve transportation of products and supplies from overseas and within the U.S. to help lower prices, reduce shortages and add union jobs.

That message is becoming more critical as the government reported Wednesday that consumer prices in October climbed 6.2% from a year ago. Inflation has intensified instead of fading as the economy reopened after the coronavirus pandemic, creating a major challenge for Biden whose administration repeatedly said that the price increases were temporary. During remarks at the port, he acknowledged that consumer prices remained "too high."

"Everything from a gallon of gas to a loaf of bread costs more," he said.

"We still face challenges and we have to tackle them ... we have to tackle them head on."

Higher prices have eaten into wages and turned public sentiment on the economy against Biden in polls. One of the obstacles for reducing inflation has been backlogged ports with ships waiting to dock at major transit hubs, causing shortages and leaving some store shelves depleted ahead of the holiday shopping season.

"Many people remain unsettled about the economy and we all know why," Biden said.

He offered his infrastructure plan as the solution, albeit one that will take time to manifest. Better infrastructure — whether roads, bridges, ports or whatever — would give more capacity and resiliency for the supply chain.

There would be more capacity to unload ships and move goods, which in turn would reduce price pressures and shortages.

Biden said the infrastructure spending would create jobs paying $45 an hour, nearly 50% above the current national average. It would create a wealth of jobs to fix aging pipes, bridges and roads, and boost clean energy and cybersecurity. And most

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, TRUMAN JOHNSON of James Cistern, Eleuthera, The Bahamas, intend to change my name to TRUMAN ELTHIUS JOHNSON. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, VALENTINO MARIO MILTON NEWTON of Harts, Exuma, The Bahamas, Parent of VALENTINO MARIO FRANK FREDRICK FOWLER A minor intend to change my child’s name to VALENTINO MARIO FRANK FREDRICK NEWTON If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, VALENTINO MARIO FOWLER of Harts Exuma, The Bahamas, intend to change my name to VALENTINO MARIO MILTON NEWTON. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

PRESIDENT Joe Biden poses for a photo after speaking during a visit at the Port of Baltimore, Wednesday, Nov. 10, 2021.

Photo:Susan Walsh/AP

wouldn't require college degrees.

"This is a once in a generation investment," he said.

The president pointed to Baltimore's port as a blueprint on how to reduce shipping bottlenecks that have held back the economic recovery.

The

facility is adding container cranes as well as a 50-foot berth where ships can be unloaded.

Baltimore's port is also benefiting from grants to upgrade the Howard Street Tunnel, a brick-lined underpass for trains that opened in 1895. The tunnel would be

expanded so that shipping containers could be doublestacked on railcars, making it easier to move goods out of the port.

The president, who consulted with the CEOs of Walmart, Target, FedEx and UPS on Tuesday, emphasized that these

investments are part of a national effort to relieve supply chain bottlenecks in ways that can aid broader growth.

His administration also announced new investments to reduce congestion at the Port of Savannah in Georgia, nearly a month after the administration helped broker a deal for the Port of Los Angeles to operate nonstop.

The president has been trying to explain that the port congestion shows just how strong the economic rebound from the pandemic has been. A forecast by the National Retail Federation suggests a record level of imports this year.

The inflation phenomenon is also global in nature, with Germany and China recently reporting high levels.

PAGE 12, Thursday, November 11, 2021 THE TREASURY Building is viewed in Washington, May 4, 2021. The U.S. monthly budget deficit fell in October as the government collected more taxes from individuals and corporations thanks to a much improved economy emerging from the coronavirus pandemic. The Treasury Department reported Wednesday, Nov. 10, that the federal government posted a deficit of $165 billion last month, 42% lower than the same month last year when it rang up a record October deficit of $284.1 billion.

Photo:Patrick Semansky/AP

THE TRIBUNE

US BUDGET DEFICIT EASES TO $165B IN OCTOBER, DOWN 42%

By MATT OTT AP Business Writer THE U.S. monthly budget deficit fell in October as the government collected more taxes from individuals and corporations thanks to a much improved economy

emerging from the coronavirus pandemic.

The Treasury Department reported Wednesday that the federal government posted a deficit of $165 billion last month. That was 42% lower than the same month last year when it rang up a record October deficit of $284.1 billion. At that time revenues were declining while spending to deal with the impact of the coronavirus soared.

This October, the first month on the government’s calendar for fiscal 2022, spending fell 14% from last year to $449 billion, while revenues rose 19% to an October record of $284 billion.

Treasury officials said Wednesday that the lower October deficit this year was attributable to more tax revenue from millions more people back working, and booming corporate profits as the economy reopened. Last October, there were still no vaccines and many businesses suffered as people remained holed up at home.

Tax revenue in October was also boosted because those who filed for extensions had their bills come due last month.

The decline in spending from last October to this year was due in part to a decrease in spending by the Department of Education related to coronavirus funding for public schools.

The deficit for the 2021 budget year that ended Sept. 30 totaled $2.77 trillion, the second highest on record. But that was an

improvement from the alltime high of $3.13 trillion reached in fiscal 2020. The deficits in both years reflect trillions of dollars in government spending to counteract the devastating effects of a global pandemic.

Before the deficit ballooned during two years of a global pandemic, the biggest deficit had been a shortfall of $1.4 trillion in 2009. At that time, the U.S. was spending heavily to lift the country out of a severe recession following the 2008 financial crisis.

The non-partisan Congressional Budget Office expects the deficit will fall to $1.15 trillion in the current budget year, which began Oct. 1, and will dip below $1 trillion for three years from 2023 through 2025 before rising again above $1 trillion for each year through 2031.

That CBO forecast does not include the spending that will occur from the recently passed $1 trillion infrastructure bill or other potential spending measures in President Joe Biden’s agenda.

The CBO projections are that the deficits over the next decade will add another $12.1 trillion to the national debt.

Although the government reported late last month that the economy slowed sharply to a 2% annual growth rate in the July-September period, that followed robust growth rates of 6.7% in the second quarter and 6.3% in the first quarter, gains that had been fueled by vast infusions of federal rescue aid.

LEGAL NOTICE

ACCLAIRA RUMEX FINANCE LTD. Company No. 1473508 (In Voluntary Liquidation)

NOTICE is hereby given pursuant to Section 204 (1) (b) of the BVI Business Companies Act, 2004 that ACCLAIRA RUMEX FINANCE LTD. is in voluntary liquidation. The voluntary liquidation commenced on 9th November 2021 and Markus Ducrey of Hofstrasse 12, 5073 Gipf-Oberfrick, Switzerland been appointed as the Sole Liquidator.

Dated this 10th day of November 2021 Sgd. Markus Ducrey Voluntary Liquidator

THE TRIBUNE

Thursday, November 11, 2021, PAGE 13

US SUES UBER, SAYING WAIT FEES DISCRIMINATE AGAINST DISABLED

By DEE-ANN DURBIN AP Business Writer THE federal government is suing Uber saying it discriminates against disabled people by charging fees when drivers have to wait for passengers to board their vehicles.

Uber's "wait time" fees kick in two minutes after a driver arrives, and are charged until the car begins its trip. According to the

Department of Justice, Uber added the fees in a few cities in April 2016.

Eventually, they spread nationwide.

In its lawsuit, filed Wednesday in U.S. District Court in Northern California, the Justice Department says Uber is violating the Americans with Disabilities Act for failing to modify its fees for those who may need extra time to get into an Uber car.

The lawsuit alleges that Uber charged the fees even when it was aware that a delay was disability-based.

Uber said Wednesday it has been in active discussions with the Justice Department and was surprised and disappointed by the lawsuit.

"Wait time fees are charged to all riders to compensate drivers after two minutes of waiting, but were never intended for

riders who are ready at their designated pickup location but need more time to get into the car," Uber said in a statement.

Uber said its policy is to refund wait time fees for disabled riders whenever they alerted the company they were changed. As of last week, any rider who certifies they are disabled will have the fees automatically waived, the company said.

NOTICE LIRONA LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)

LIRONA LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b)

The dissolution of the said company commenced on the 8th November, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said company is Leeward Nominees Limited, Vistra Corporate Services Centre, Wickhams Cay 11, Road Town, Tortola, British Virgin Islands.

Dated this 11th day of November, A. D. 2021 _________________________________ Leeward Nominees Limited Liquidator

NOTICE CAPITAL LINK INC. N O T I C E IS HEREBY GIVEN as follows: (a)

CAPITAL LINK INC. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b)

The dissolution of the said company commenced on the 8th November, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said company is Leeward Nominees Limited, Vistra Corporate Services Centre, Wickhams Cay 11, Road Town, Tortola, British Virgin Islands.

Dated this 11th day of November, A. D. 2021 _________________________________ Leeward Nominees Limited Liquidator

NOTICE J&S GROUP LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)

J&S GROUP LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b)

The dissolution of the said company commenced on the 8th November, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

Dated this 11th day of November, A. D. 2021 Bukit Merah Limited Liquidator

NOTICE BERNINA INTERNATIONAL HOLDINGS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)

BERNINA INTERNATIONAL HOLDINGS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b)

The dissolution of the said company commenced on the 8th November, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

Dated this 11th day of November, A. D. 2021 Bukit Merah Limited Liquidator

NOTICE SOLESTE INVESTMENT HOLDINGS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)

SOLESTE INVESTMENT HOLDINGS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b)

The dissolution of the said company commenced on the 8th November, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

Dated this 11th day of November, A. D. 2021 Bukit Merah Limited Liquidator

PAGE 14, Thursday, November 11, 2021

THE TRIBUNE

ELECTRIC TRUCK MAKER RIVIAN ZOOMS TO $86B MARKET VALUE

By MATT OTT AP Business Writer

SILVER SPRING, Md. (AP) — Shares of Rivian Automotive jumped in their debut Wednesday, rising as much as 53% as investors look for the next big winner in the electric vehicle market.

The closing price of $100.73 gave Rivian a market value of about $85.9 billion, greater than that of Ford and just below General Motors. That’s noteworthy because Rivian has so far delivered about 150 of its electric pickup trucks to customers, mostly employees, whereas Ford and GM sell millions of cars globally each year.

Ford is one of Rivian’s high-profile backers, having invested a half-billion dollars into the company in 2019. The other is Amazon, which held a 20% stake in Rivian ahead of the IPO. Rivian is aiming to take advantage of a growing appetite among consumers and investors for electric vehicles. It joins what’s becoming a long line of companies, both new and old, trying to peel away market share from Tesla.

Tesla has largely dominated the electric vehicle market for years, amassing a market value of more than $1 trillion along the way. So far this year, Tesla has sold around 627,300 vehicles.

Rivian priced the offering of 153 million shares at $78,

giving it proceeds of nearly $12 billion. The company said it will use the money to ramp up production of its trucks, vans and SUVs. Craig Irwin, an analyst who covers electric vehicle and EV charging companies for Roth Capital, says that even with more companies entering the EV market, there is still plenty of room for newcomers.

“EVs are inevitable, and it’s a good thing for the markets to have another credible EV competitor come public,” Roth said.

“Rivian’s IPO marks a point of incremental maturation for the industry and shows that billions in capital is available for credible players.”

Rivian has a contract with Amazon to build 100,000 electric delivery vans at its factory, a former Mitsubishi plant in Normal, Illinois.

Ford Motor Co. holds a 13% stake and has said the companies would work jointly to develop electric vehicles.

As of Oct. 31, Rivian had about 55,400 vehicle preorders in the U.S. and Canada. Those orders are placed with a $1,000 deposit that can be canceled and refunded.

Rivian rolled out its first vehicle, the R1T electric truck in September and will launch its electric SUV, the R1S, in December. Prices for the truck start at $67,500, while the SUV base package starts

THIS Nov. 14, 2018, file photo shows a Rivian R1T at Rivian headquarters in Plymouth, Mich. Shares in Rivian Automotive are set to trade publicly on Wednesday, Nov. 10, 2021, and the world should get a better idea of just how hot investors are for the electric vehicle market.

Photo:Paul Sancya/AP at $75,500 and gets even steeper with all the add-ons.

Options for the vehicles include a $10,000 battery upgrade that will extend the driving range from 314 miles (505 kilometers) to more than 400 miles (643 kilometers). A three-person roof-mounted tent adds $2,650 to the bill and an offroad recovery kit will cost an additional $600.

The company said it aims to produce about 1,200

R1Ts and 25 R1Ss and deliver around 1,000 R1Ts and 15 R1Ss by the end of 2021.

The R1T will compete with Ford’s F-150 Lightning electric pickup, which goes on sale next year. The Lightning has a starting price of $40,000, but will sell for thousands of dollars more once customers add options. General Motors has announced plans for an electric version of the Silverado pickup.

“Although the R1T’s advantage is that it’s first to market and it will likely appeal to a Tesla-type shopper, the long-term volume expectations for a $70,000+ midsize truck aren’t very high,” said Jessica Caldwell of the automotive website Edmunds in an email.

The research firm LMC Automotive says in 2020, EVs made up a little more than 3% of the global auto market and less than 2% of the U.S. auto market. The

group projects those numbers to shoot up to about 15% and 12%, respectively, by 2025.

Rivian, which was founded in 2009, says it lost $426 million in 2019 and $1 billion last year. It reported losing nearly another billion dollars in the first six months of this year. Tesla, which went public in 2010, recorded its first annual profit last year.

THE TRIBUNE

Thursday, November 11, 2021, PAGE 15

PAGE 18, Thursday, November 11, 2021

THE TRIBUNE

BEYOND MEAT Q3 SALES FALL SHORT AS US DEMAND DROPS

By DEE-ANN DURBIN AP Business Writer

PLANT-BASED meat maker Beyond Meat reported lower-thanexpected sales in the third quarter due to a slump in U.S. demand.

Beyond Meat said its sales increased 12.7% to $106.4 million for the JulySeptember period. That was lower than the $109 million Wall Street forecast, according to analysts polled by FactSet. Shares in the company based in El Segundo, California, dropped 18% in after-hours trading.

Beyond Meat President and CEO Ethan Brown said the results were especially disappointing because they came on the heels of the second quarter, when the company reported record revenue of $149 million.

In the third quarter, U.S. retail sales were down nearly 16% while food service sales fell 7%.

Brown said the delta variant of the coronavirus diminished restaurant demand, particularly at the independent restaurants where the majority of Beyond Meat’s products are sold.

Labor shortages at Beyond Meat

BEYOND Meat brand Beyond Sausage are displayed in a cooler in a market in Pittsburgh, Wednesday, May 5, 2021. Plant-based meat maker Beyond Meat reported lower-than-expected sales in the third quarter due to a slump in U.S. demand Photo:Gene J. Puskar/AP

manufacturing plants and grocery stores hurt product distribution. And severe weather impacted one of its manufacturing facilities in Pennsylvania, cutting off water supplies for two weeks.

Brown said Beyond Meat also lost some market share to an increasing number of competitors in the plantbased meat category. But he said he doesn’t believe the results indicate declining consumer interest in Beyond Meat’s products.

He noted that repeat-buying rates rose in the quarter.

“I think all of these factors are coming together to create an unusual quarter

for us, but there is no indication in my view that ... there is some fundamental change in the consumer mindset toward our product,” Brown said in a conference call with investors.

He said the company plans to push the health and climate benefits of its products in an aggressive marketing push next year.

But in the meantime, Beyond Meat expects the turmoil to continue in the current quarter. The company said it expects net revenue in the range of $85 million to $110 million in the October-December period, far below Wall Street’s forecast of $130.5 million.

THE TRIBUNE

DISNEY RETURNS TO PROFIT IN 4Q, BUT STREAMING GAINS SLOW

By TALI ARBEL AP Technology Writer THE Walt Disney Co. returned to a quarterly profit as it once again got a bump from reopened parks, but subscriber gains to its Disney+ streaming service slowed.

Disney had closed or limited capacity at its theme parks during the pandemic, weighing on revenue. The parks have all reopened, with Disney World in Florida open since last summer and California's Disneyland only since the end of April.

Burbank, Californiabased Disney on Wednesday reported that its net income was $159 million in the three months through Oct. 2, compared with a loss of $710 million in its fiscal fourth quarter a year ago. Earnings per share came to 9 cents, or 37 cents after one-time items. Revenue climbed 26% to $18.53 billion.

Analysts polled by FactSet predicted earnings of 52 cents per share, excluding one-time items, on revenue of $18.8 billion. Disney shares dropped 4.9% to $165.98 in aftermarket trading.

The company ended its fiscal year with 118.1 million Disney+ subscribers, up 60% from the previous year but only 2 million higher than the previous quarter and less than analysts' forecast of 126.2 million. It's the lowest number of quarterover-quarter subscriber gains since the service launched two years ago.

Disney CFO Christine McCarthy said she expects "meaningfully higher" subscriber gains in the second half of the fiscal year that started in October than in the first six months.

Some analysts have warned that growth is lagging and Disney+ could miss its target of 230 million to 260 million subscribers by 2024. Disney CEO Bob Chapek on Wednesday backed the company's forecast in a call with investors.

The company has about 179 million total streaming subscribers including Disney+, ESPN+ and Hulu, and Disney says its streaming business is its top priority as cord-cutting reduces the

viewing universe for traditional TV networks. Still, Disney's networks business, which includes ABC, ESPN and FX, brings in a lot of money — $8.41 billion in profit this fiscal year.

Thursday, November 11, 2021, PAGE 19

PAGE 20, Thursday, November 11, 2021

THE TRIBUNE