12222023 BUSINESS by tribune242

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FRIDAY, DECEMBER 22, 2023

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Hitting Gov’t deficit target ‘increasingly complicated’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government will find it “increasingly complicated” to hit this year’s 75 percent deficit-slash target, a major global bank has warned, while predicting this will “shift the debate back to tax reform”. Santander, in a November 28, 2023, update for institutional investors on The Bahamas’ fiscal status, hailed the “important progress” made by the Davis administration in achieving a 2022-2023 fiscal deficit that came in below the original $564m target to give this nation some “near-term breathing room”. However, its note warned that “the good news now might be behind us” with the Bahamian and world economy’s post-COVID reflation largely complete and this nation’s Budget lacking sufficient flexibility to make expenditure adjustments following the end to pandemic spending on subsidies and other relief. Pointing out that debt servicing costs have increased significantly postCOVID, due to the debt blow-out that it and Hurricane Dorian produced, to now stand at 4.2 percent of gross

* Santander: ‘No clear plan’ for $390m slash * But hails Gov’t on ‘near-term breathing room’ * Says unlikely to go for ‘necessary tax reform’ domestic product (GDP) as opposed to 2.6 percent pre-pandemic, Santander asserted that “no clear plan” has been articulated as to how The Bahamas will achieve the magnitude of the correction it is targeting. Openly stating that “the next phase for fiscal consolidation is much more challenging”, its report said: “The fiscal targets are now increasingly complicated on shifting a nominal -4 percent of GDP deficit to near balance this fiscal year and, still more important, consolidation to a 1.5-2 percent of GDP nominal surplus in fiscal years 2024-2025 and 2025-2026.” That amounts to a $389.5m correction, or reduction. While agreeing that the Government’s “more ambitious trajectory” would be more beneficial to The Bahamas, in terms of easing the high interest and financing burden on Bahamian taxpayers, Santander reiterated it was “not clear” how the 2023-2024 targets will be realised given the absence of tax/revenue

reform and “budget rigidity” given that most spending covers fixed costs such as salaries and rents. “The more ambitious trajectory on fiscal consolidation would provide some welcome relief not only on the high plus-80 percent of GDP debt ratios but also the high 22 percent of gross financing needs and the high interest at 23 percent of government revenues in 2022-2023,” it added. “The first preview to 2023-2024 shows the seasonal shift back to surplus in July 2023 but a lower surplus compared to July 2022 ($18.2m versus $41.3m). It’s not clear how the gradual consolidation will shift a 4 percent of GDP deficit to near nominal balance in fiscal year 2023-2024 at -0.9 percent of GDP. “The official fiscal year 2023-2024 projection includes equal adjustment for a 1.7 percent of GDP increase in revenues and a 1.7 percent of GDP cutback in spending. There was no improvement on revenues/GDP this SEE PAGE B04

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URCA’S BPL FUEL TARIFF REVIEW ‘SOUNDS BIT ODD’ * Regulator to evaluate charges it already approved * Opposition chief asserts: ‘They are doing this late’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Opposition’s leader yesterday asserted “it sounds a bid odd” that regulators now plan to examine the lawfulness of Bahamas Power & Light’s (BPL) fuel charges having previously approved them. Michael Pintard said the Utilities Regulation and Competition Authority (URCA), based on its 2024 annual plan, is preparing to “audit” the very same BPL fuel charge ‘glide path’ strategy that it approved in late 2022 and which subsequently resulted in “sky rocketing” electricity bills for Bahamian households and businesses. “My first reaction, if my recollection is correct, URCA approved

OPPOSITION leader Michael Pintard. the rate increases for BPL. If I’m correct, the approved the ‘glide path’,” the Free National Movement (FNM) leader told this newspaper. “It sounds a bit odd to me that they are now going to review the very thing they’ve approved.... They are doing this late. This ought to have been done prior to them giving BPL approval to proceed. “I would like to see what the data says, but we are of the view that they justified SEE PAGE B04

SMALL BUSINESS ACT: PROVE SERVICES EXPORTS DESERVE VAT-FREE RATING ‘LET’S CLOSE THE DEAL’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A SMALL business advocate is pledging to “close the deal” on legislation to advance the sector’s interests in 2024, adding: “This is my last year in pushing for this Act.” Mark A Turnquest, the 242 Small Business Association and Resource Centre’s (SBARC) founder, told Tribune Business that his personal 14-year quest for a Bahamas Micro, Small and Medium Size Development Act (MSME Act) will be handed over to the organisation’s “new management team” to pursue if it does not happen next year. “This is it. This is my last year in pushing for this Act,” he said. “It’s been too long now; time for them [SBARC’s management] to take it over. This is it. This is my last year. I tell you now this is it. We’re going to close on this this year and

MARK A Turnquest bring everybody on board. “We now have to close the deal. I will never go away from advocacy, but I will not be doing it all myself. I first developed the framework 14 years ago, and this has to be where I reach the end of my journey. I gave it all for small businesses in this country. My whole life, since God gave me strength in my eyesight, has been to focus on the Small Business SEE PAGE B08

DON’T LEAVE FISCAL CHANGE UNTIL ‘THINGS GETTING DICEY’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas must not leave the need for any fiscal adjustments to the stage where “things get a bit dicey”, a governance reformer advocated yesterday in backing the IDB. Hubert Edwards, head of the Organisation for Responsible Governance’s (ORG) economic development committee, told Tribune Business that the Inter-American Development Bank’s (IDB) call for the Government to make any necessary Budget and medium-term Fiscal Strategy alterations in response to changing conditions and circumstances was “sound”. With the Davis administration forecasting a 75 percent or $389m yearover-year decline in the 2023-2024 fiscal deficit, as part of its strategy for producing a Budget surplus the following fiscal year, he agreed that it should not unduly delay any changes

that become necessary but added that moving in the “general” direction of the consolidation path laid out will be sufficient. “Anything that threatens that on a fundamental level, where it is recognised there is going to be a shortfall in revenue or over-spending and a need for additional spending, the Government must make early adjustments,” Mr Edwards told this newspaper. “Despite maybe not making the 0.9 percent of GDP deficit target, which is what the IMF has promulgated, I think the general trend of moving the deficit downwards vis a vis two to three years ago and making progress towards a surplus is very important at this time. “It’s not necessary in the grand scheme of things that we need a balanced Budget at this time, but having regard to the creditworthiness of the country and the debt circumstances and the SEE PAGE B07

BAHAMIAN accountants must prove audit and other services they provide to financial services entities are “for purposes outside” the jurisdiction to obtain VAT-free treatment, the tax authorities have ruled. The Department of Inland Revenue’s acting VAT comptroller, in an “advance ruling” dated October 31 this year, responding to a request for clarification from an unnamed accounting said the VAT treatment

depends on whether “the benefit or advantage” from receiving their services occurs outside or within The Bahamas. Should accounting services be supplied for “purposes outside The Bahamas, the tax authority warned that firms must obtain records from their client to prove this and make them available for inspection to obtain a VAT-free or ‘zero rating’ designation. This will enable their client to avoid the standard 10 percent levy. Pretino P. Albury, the Bahamas Institute of

Chartered Accountants (BICA) president, could not be reached for comment before press time last night but sources told Tribune Business that the ruling and its implications have prompted discussions in accounting circles. At least one source, speaking on condition of anonymity, questioned whether applying VAT on services charged to Bahamas-domiciled corporate vehicles - such as International Business Companies (IBCs), trusts and investment funds - typically used by international clients was the right way to

boost financial services competitiveness. Another suggested the supply of such services had been VAT ‘zero rated’ until the law was changed to address the ‘ring fencing’ concerns of the European Union (EU) and Organisation for Economic Co-Operation and Development (OECD). One accountant said some were discussing whether to absorb the VAT rather than pass it on to their clients. Referring to the accounting firm’s request, the acting VAT comptroller SEE PAGE B06

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HOW COMPANIES CAN GET INTO THE CHRISTMAS SPIRIT CHRISTMAS is finally and officially here. A time of joy, celebration, food and festivities. The most effective and successful companies are continually finding ways to give back through corporate social responsibility as well as spreading Christmas cheer to employees. This week’s column focuses on some lastminute suggestions for how small businesses can participate in the holiday spirit. 1. Give the Gift of Giving Think out-of-the-box for a productive holiday season. Christmas is the perfect time of the year to engage the team in a special charity project. We do not have to look very far to find many companies and people in desperate need of support. 2. Personalise Gifts for Employees Personalising employee gifts adds an element of genuine empathy that simply cannot be matched by a one-size-fits-all gift. The only note of caution here is to ensure that each of the gifts are close in value as employees will be comparing them. 3. Consider a holiday ‘off’ day Nothing beats allowing employees time to spend with family. A free paid day goes a long way in telling staff how much you appreciate them and value work-life balance. Remember... a happy worker works harder. 4. Bring the Team Together Find the true meaning of Christmas by

bringing employees together to celebrate what they have accomplished together professionally, as well as on a personal level. People love to eat, especially during the holidays. So do something special at the office to enjoy all the delicious goodies that are available during Christmas. Do all in your power to make the office celebration fun and exciting. 5. Make a Human Connection One of the big advantages of Christmas, which promotes goodwill to all, is that employers have a pretext to wander around having nonwork-related conversations with all staff. Now is the time to demonstrate that companies see employees as human beings rather than units of labour by asking about their families and holiday plans. There are few things more motivating for an employee than knowing their employer has a genuine interest in their lives, and there are few better opportunities to demonstrate this than during the festive season. UÊ \Ê > Ê,Ê iÀ}ÕÃ Ê ÃÊ>ÊÌ> i ÌÊ > >}i i ÌÊ> `Ê À}> Ã>Ì > Ê`iÛi « i ÌÊ V ÃÕ Ì> Ì]Ê >Û }ÊV « iÌi`Ê}À>`Õ>ÌiÊ ÃÌÕ` iÃÊÜ Ì ÊÀi} > Ê> `Ê ÌiÀ >Ì > Ê Õ ÛiÀÃ Ì iÃ°Ê iÊ >ÃÊÃiÀÛi`Ê À}> Ã>Ì Ã]Ê L Ì Ê V> ÞÊ> `Ê} L> Þ]Ê«À Û ` }ÊÀi iÛ> ÌÊÃ ÕÌ ÃÊÌ ÊÌ i ÀÊLÕÃ iÃÃÊ}À ÜÌ Ê> `Ê `iÛi « i ÌÊ ÃÃÕiÃ°Ê iÊ >ÞÊLiÊV Ì>VÌi`Ê>ÌÊ ÌVV ÃÕ Ì> ÌÃJÊV À> Ü>Ûi°V °

BAHAMAS WINS TOP CARIBBEAN SUSTAINABLE DESTINATION AWARD The Bahamas won four honours at the Caribbean Travel Awards 2024 including Sustainable Destination of the Year. The Ministry of Tourism, Investments and Aviation, in a statement, said this award highlighted The Bahamas’ commitment to preserving its environment and cultural heritage. Besides the Sustainable Destination of the Year, accolade The Bahamas also won the Caribbean Destination of the Year honour with Nassau/ParadiseIsland. The Paradise Island-based, The Dilly

Club, won Caribbean Bar of the Year, while Small Hope Bay Lodge in Andros took the Caribbean Dive Resort of the Year award. Latia Duncombe, the Ministry of Tourism, Investments and Aviation’s general director, said: “Winning Sustainable Destination of the Year is a moment of immense pride for The Bahamas. “This recognition speaks volumes about our dedication to preserving the stunning landscapes and rich cultural heritage that make our islands unique. We are thrilled to be

acknowledged for our sustainable efforts and look forward to inspiring others to follow suit.” Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, said: “The Bahamas’ success at the Caribbean Travel Awards 2024 is a testament to our unwavering commitment to excellence. These accolades celebrate not only our pristine beaches and vibrant culture but also our dedication to sustainability. We invite the world to experience the magic of The Bahamas responsibly.”

THE TRIBUNE

Friday, December 22, 2023, PAGE 3

CHARTER JET SERVICE SKY DIVING PROVIDER BURNING $8,400 PUBLIC LAUNCHES FLIGHTS TO ABACO MONTHLY IN WAIT TO BECOME LICENSED By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A SKYDIVING excursion provider yesterday said it is burning through $8,400 per month on renting a plane it cannot use as it battles to obtain the necessary licences and permits. Vans Johnson, Sky Dive Bahamas chief executive, told Tribune Business he is still not licensed to offer sky diving excursions. The licence he received from the Civil Aviation Authority of The Bahamas (CAAB) was only for a seven-day period, not an annual licence, even though he aims to offer regular excursions and not a one-time event. “My last monthly invoice was $8,400 a month. I have to find $8,400 a month, or find a way to send money for them to hold my plane,” Mr

Johnson added. Documents seen by Tribune Business show Civil Aviation had only licensed Sky Dive Bahamas from November 3 to November 10, and not on an annual basis. The provisional letter, signed by the CAAB’s directorgeneral, said all jumps must begin at 6,000 feet and from five miles outside the Moss Town, Great Exuma airport. Mr Johnson added: “I’m not going to deal any drugs. I’m not going to steal anything from anybody. All I want to do is make some money the way I believe. I know I can make $20,000 a day. Let me make it legally.” He estimated that he can handle up to 20 bookings or more per day at a price of $700 per person, and said: “I’m not surprised about the delay. I’m not disappointed because I know it is going to be a success. I just know that.”

However, Mr Johnson said he is disappointed in that there appears to be a ‘glass ceiling’ on what ventures Bahamians can get involved in. “If I was selling conch salad or opening a chicken shack, I would not have a problem. But because I’m doing something different, new and exciting for The Bahamas, I’m encountering all types of obstacles and problems,” he added. “Their lawyer told me that I have the approval. We just need you to apply for each date when you are going to do something. So I can’t open up in the morning. I’m not running events, I’m running tours.” This licensing snag is just one of the remaining obstacles facing Sky Dive Bahamas before it can launch operations. This newspaper previously reported that the company needed specialised insurance coverage before it

BAHAMIANS URGED TO GUARD AGAINST RANSOMWARE SURGE By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A BAHAMAS-BASED cloud services provider yesterday warned consumers and businesses to on their guard for ransomware attacks as there is a “noticeable spike” during Christmas . Scott MacKenzie, Cloud Carib’s chief executive, told Tribune Business that Bahamians should be careful when opening e-mails during the festive period as well as their online purchases. I think from an attack vector perspective, buying stuff online nowadays is not super unsafe,” he said. “But there are a lot of attacks right now, with people receiving an email - basically malware and stuff like that - in PDF files, or people saying here’s an invoice or here’s a shipping request, or here’s your confirmation for buying stuff, but it’s not coming from a legitimate company. “So people buying on Amazon or wherever need to be very careful, because there are a lot of bad actors that are actually sending malware and cryptoware and stuff like that through e-mail because there’s so many people buying stuff from Amazon and eBay and stuff online right now. “Now is a prime time for people - bad actors - to send people these things so that

they end up with encrypted computers and then having to pay money.” Ransomware attacks are not new, but can cripple personal devices or entire networks if unsuspecting individuals are duped into believing they are legitimate data and permit their entrance. “There may be a slight spike from some of the reports,” Mr MacKenzie said. “But it’s not way more than normal. It’s just the regular holiday season that people should be extra cautious about opening any e-mail attachment.” He urged consumers to pay special attention to the e-mails they receive as the sender may be using the logo of an official company such as Amazon or Ebay, yet their address is illegitimate. These attacks have gotten “very sophisticated”. Mr MacKenzie said: “Some of them look really good. There are a lot of them that are lazy and they’re easy to spot, but some of them are really sophisticated. That would be something I would say has advanced this year. It’s not really the volume but the sophistication is definitely there.” Consumers must be especially wary when opening unsolicited e-mails because it is the “biggest attack vector” right now. That means fake invoices, even Christmas cards and any kind of attachment that you are unsure of, should be deleted or the service provider notified.

BAHAMAS INVESTS $400K IN FIRST LIVESTOCK FEED MILL FOR 40 YEARS By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

BAHAMIAN agriculture’s push to reduce the country’s $1bn annual food import bill has been boosted by the Government’s $400,000 acquisition of the first new animal feed mill in 40 years.] The Ministry of Agriculture and Marine Resources, in a statement, said the Bahamas Agricultural and Industrial Corporation (BAIC) has now received the feed mill that was imported from India. Jomo Campbell, minister of agriculture and marine resources, said: “I’m extremely excited by the arrival of this new feed mill. We will now be in a position to begin the remarkable journey of transformation the agricultural industry.” The Ministry of Agriculture and Marine Resources said the previous mill was only used to feed the animals at the ministry’s Gladstone Road Agricultural Centre (GRAC). Its replacement

JOMO CAMPBELL, minister of agriculture and marine resources. will now supply feed for livestock farmers across the country. Leroy Major, BAIC’s chairman, said: “The Government has invested in a real feed mill that will supply feed continually for the entire country.” He added that this will enable Bahamian farmers to save on expensive feed imports. “The money can now stay in country,” Mr Major said. “This feed mill can now do crumble and pellets for an

array of animals like fish, pigs, chicken,and much more.” The feed mill will also play a vital role in the Government’s Golden Yolk Programme, which was launched earlier this year. This initiative aims to slash The Bahamas’ food import bill by $12.5m by increasing Bahamian egg production from 750,000 to more than 27m eggs per year. “This feed mill is stage one for the Golden Yolk Programme, and stage two will consist of constructing chicken houses and we’ll continue from there,” Mr Major said. As part of the sustainable food programme, 38 new egg houses will be created on 12 islands as the Government seeks to produce 13m eggs in the Family Islands. Mr Major urged farmers across The Bahamas to expand their livestock, adding: “I believe we will soon begin to see the benefit from this. This is a great work we are doing for the industry.”

can be featured on the Ministry of Tourism’s Bahamas. com website. E-mail correspondence from CAAB recognises Sky Dive Bahamas as a company offering tours, and further asks it to make formal requests for each following jump that they offer in the future. This is not something Mr Johnson finds advantageous, and he is seeking to negotiate a better arrangement with the aviation regulator so he can operate his business more efficiently. Tribune Business calls to CAAB yesterday were not returned as the director and deputy director were said to be unavailable and out of office. Mr Johnson said: “I’m doing my best to stay positive. But, right now, because of what they did to me, my future partners and I are waiting on whatever we can get up because our plane costs $30,000 to bring in. When we first started, it only cost me $5,000 to bring in the plane. But I owe over $100,000 now.”

A ‘HOP-ON’ public charter jet service has launched services to Abaco with its first-ever flight arriving in Marsh Harbour yesterday. John Pinder, parliamentary secretary in the Ministry of Tourism, Investments and Aviation, said: “With the launch of JSX’s new route to Marsh Harbour, ease of travel, time and overall comfort add to the luxury experience we want to offer our visitors. “The Abacos are a world-class paradise vacation destination, and it is only fitting that we have new and exciting options for getting here. I look forward to a continued partnership and growth with JSX, and welcome this award-winning public charter jet service to The Bahamas.” Dr Kenneth Romer, the ministry’s deputy director-general and acting director of aviation, added: “Aggressively growing air stopover

arrivals, while continually engaging new source markets, continues to rank high among our key organisational priorities. “Abaco’s post-Dorian tourism recovery is impressive, and we are fully committed to not only increasing airlift but also leveraging ownership opportunities for local stakeholders and entrepreneurs.” Tourists can travel from Dallas, Miami/ Opa-locka or Westchester County in New York to take advantage of JSX’s new seasonal international flight to The Abacos. New JSX flights will operate up to five days per week on Sunday, Monday, Thursday, Friday and Saturday, offering the following itineraries: Non-stop service between Miami/Opa-locka (OPF) and Marsh Harbour; same plane through flights between Westchester County, New York and Marsh Harbour; and onestop flights between Dallas and Marsh Harbour.

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THE TRIBUNE

HITTING GOV’T DEFICIT TARGET ‘INCREASINGLY COMPLICATED’ FROM PAGE B01

past fiscal year but, rather, the burden of adjustment was solely on lower spending.” Santander added that breaking down government spending by category “shows decreasing marginal budget flexibility after an unwind of temporary subsidies and social benefits” following COVID19 and “now structurally higher debt service at 4.2 percent of GDP versus 2.6 percent of GDP in fiscal 2018-2019”. “All the spending categories are near fiscal 2018-2019 levels except for debt service,” it said. “The high proportion of debt service would argue for higher structural revenues with on/off reference to tax reform. The Budget rigidity and mature phase of cyclical recovery post-pandemic should soon shift the public debate back to tax reform. “There is low conviction on whether The Bahamas would commit to tax reform as the necessary but politically controversial adjustment to achieve their ambitious medium-term fiscal targets.” The Davis administration has repeatedly described new and/

or increased taxes as a fiscal last resort, instead prioritising economic growth, revenue enhancement and spending containment as well as new income streams. Santander thus joins the International Monetary Fund (IMF) and Inter-American Development Bank (IDB) in raising questions over whether the Government will hit its $131.1m, or 0.9 percent of GDP, deficit target for the current 2023-2024 fiscal year that closes at end-June. The IMF, in its statement on the annual Article IV consultation with The Bahamas, estimated that the current fiscal year’s deficit will be “considerably larger than that expected in the Budget” at a sum equal to 2.6 percent of gross domestic product (GDP). This is almost triple the Davis administration’s forecast of a deficit equivalent to 0.9 percent of GDP or total Bahamian economic output. The IMF’s prediction, if accurate, would mean that the GFS deficit - which measures by how much government spending exceeds its revenue income - would balloon to around $378.73m compared to the Government’s $131.1m forecast.

And the IDB, in a paper tackling the doubling of its crisis funding facility for The Bahamas to $200m, estimated that “the fiscal deficit will be at around 3 percent of GDP in fiscal year 2023 and around 2 percent in fiscal year 2024”. The latter figure would peg the deficit, based on the Government’s GDP Budget estimates, at around $290m. It remains to be seen, though, whether it is the Government or the external observers who are correct as the latter do not always get their forecasts right. Michael Halkitis, minister of economic affairs, said at end-November that the Government is “betting on our ability” to hit its fiscal targets and predicted that the Opposition and other critics will “be wrong again”. He argued that the IMF, in particular, always took a far more conservative view of the revenue impact from enhanced enforcement, compliance and administration, believing such gains are effectively one-offs that are not recurring year after year, whereas the Davis administration’s view is more positive. And Mr Halkitis added that the administration “have met

or exceeded all of our projections”, which contrasts with its recent June and 2023-2023 fiscal year-end report. While the $533m deficit came in lower than the original $564m Budget projection, and first revised estimate of $575.4m, it was slightly higher than the final $520m estimate unveiled with May’s Budget. Santander gave the Davis administration credit for largely meeting its 2022-2023 projections, and setting the deficit on a declining path from the $1.335bn COVID peak, although it betrayed an impatience over the timing of the June and July 2023 monthly fiscal reports by headlining its note: ‘Finally, fiscal data’. It acknowledged, though, that “more important” than the timing was confirmation that The Bahamas’ fiscal consolidation was on track. “There was low probability for an overshoot on the Budget with the full-year target only requiring some minimal flexibility to reduce the deficit for the month of June,” Santander wrote. “This provides some near-term breathing room with successful completion of the fiscal year 20222023 target and gradual progress on

reducing the deficit of 5.2 percent of GDP in fiscal year 2021-2022 to 3.9 percent of GDP in fiscal year 2022-2023..... “However, the good news now might be behind us. Already many months now into fiscal year 20232024, and no clear plan on how to reduce a deficit of -4 percent of GDP to a much more challenging -0.9 percent of GDP target. The high debt ratios and cash flow deficit remain vulnerable to latent shocks that validates still high 10-13 percent Eurobond yields and uncertain carry returns for 2024.” While the Government largely achieved its 2022-2023 fiscal goals, Santander added: “There was a curious bump on non-tax revenues and an unusual decline in debt service, as well as cutbacks in capital spending and subsidies. This was enough to minimise the June deficit to $212m versus a $319m deficit in June 2022 and perform slightly better than the full-year 2022-2023 fiscal target.” As a result, the Government’s deficit declined from $717.3m, or 5.2 percent of GDP, in 2021-2022 to 3.9 percent in 2022-2023.

URCA’s BPL fuel tariff review ‘sounds bit odd’ FROM PAGE B01 the arguments being offered by BPL. What we argued was that the rate increase was not inevitable; it was the result of poor decision-making by the Government and BPL. They put forward a glide path in terms of the fuel charge and it increased over a period of time.” URCA, in its just-published 2024 annual plan, affirmed that it plans to review and audit BPL’s fuel tariff to determine how it is calculated and whether the charges levied on consumers since 2021 comply with the

Electricity Act and its accompanying regulations. “This project aims to determine how the BPL fuel tariff is calculated and whether charges to customers since 2021 comply with the law and regulatory frameworks. This project aligns with URCA’s mandate to ensure efficiently incurred costs, consumer protection and efficient operation per the Electricity Act,” the regulator said. “By reviewing and auditing fuel tariffs, URCA can ensure that energy prices reflect reasonably incurred costs and are fair to consumers, supporting goal two of the National Energy Policy (NEP).” In so doing, URCA

will effectively be reviewing a strategy - which it approved just over 14 months ago that hiked consumer’s fuel charges by up to 163 percent over an eight-month period. As BPL’s regulator, it late last year approved the very strategy and actions that has made electricity increasingly unaffordable for all. “As the regulator for the country’s electricity sector, URCA conducted a comprehensive review of BPL’s fuel charge increase proposal. At the conclusion of that review, URCA determined that it is satisfied that BPL has made an adequate case for the rate increases outlined in its press statement dated October 4, 2022,” URCA said. Seeking to soften the blow from its verdict, URCA promised to undertake ongoing monitoring and reviews of BPL’s fuel charge during 2023 to ensure the utility is operating efficiently and levying the correct charges on customers. “The regulator notes that BPL’s justification for the changes to the fuel charge is based on conditions that are likely to change,” URCA added. “Therefore, it is URCA’s intent to revisit that matter to ensure that BPL is operating efficiently and charging customers appropriately. URCA has advised its licensee (BPL) of its intent to review its fuel charge again during the projected glide path fuel charge recovery period, and it will make public notice of the same as necessary.” URCA has never disclosed the full analysis, or review, that it conducted to justify its conclusion that BPL fuel

charge hikes of up to 163 percent were warranted. And the timing of its review, and news release, was more than one month after BPL had already begun to implement the phased increases. BPL is now in the final stages of its so-called fuel charge ‘glide path’ strategy, having forecast an 18 cents per kilowatt hour (KWh) rate for consumers using over 800 kilowatt hours per billing. This compares to the peak 27.6 cents per KWH levied between June and August this year, and the 25 cents charged between September and November 2023. Mr Pintard, meanwhile, said the Opposition had forecast the increased cost burden that would be imposed on all Bahamians as a result of the Government’s failure to execute the additional trades that would have secured extra cut-price fuel to support BPL’s hedging strategy. “What is clearly obvious, as we predicted when they [the Government] refused to execute the rolling trades, we expected the sky-rocketing of electricity rates due to the fuel charge and, unfortunately, that turned out to be the case,” the FNM leader told Tribune Business. “Residents and businesses got a hard hit in terms of electricity costs. “URCA has to be careful that it functions in the capacity of a regulator working in the best interests of customers and not let political interference result in it cherry-picking the functions at BPL that it’s going to evaluate and comment on publicly.”

The Government exacerbated the impact of failing to execute the trades by keeping the fuel charge at an artificially-low 10.5 cents per KWh between late 2021 and October 2022, even though BPL was paying a far higher price for its fuel by having to now purchase the extra quantities it needed on the open spot market. Mr Pintard yesterday reiterated that URCA had failed to address whether the Davis administration had broken the law by providing funding, either via a loan or subsidy, to BPL to enable it to maintain the 10. cents price during that period. The repayment of that funding, and eliminating prior fuel cost under-recovery, was why Bahamians paid such steep prices for electricity in summer 2023. The Bahamas Electricity Corporation (Amendment) Regulations 2020, which were enacted to facilitate the state-owned energy monopoly’s fuel hedging initiative, required BPL to pass 100 percent of its fuel costs on to consumers. However, summer 2023’s bills and prior fuel charge under-recover suggest this did not happen between late 2021 and October. The FNM leader yesterday questioned, too, whether the two-tiered fuel charge that saw consumers using over 800 KWh pay a higher rate was permitted by law and regulations. For the Government has never precisely stated how much BPL’s fuel “under-recovery” has cost the Bahamian people and businesses. However, it is likely to be somewhere between $90m

OPPOSITION leader Michael Pintard.

and $150m. Alfred Sears, ex-minister for public works and utilities, who then had responsibility for BPL, last October informed the House of Assembly that the utility’s debt to Shell was around $90m as he unveiled the plans to pay it off in a series of $10m monthly installments through to June 2023. And the last Fiscal Strategy Report revealed the extent of BPL’s financial woes and the need for government support. “The recent disclosure of approximately $150m of payment arrears of Bahamas Power & Light (BPL) represents a significant unbudgeted liability of the Government,” it said. “To ensure continued provision of essential electrical services to the public, the Government has committed to ensuring payment of this liability by the corporation.” Government loans to state-owned enterprises (SOEs) and agencies also near-tripled during the first nine months of the 2022-2023 fiscal year to $110m, which Simon Wilson, the Ministry of Finance’s financial secretary, previously confirmed was to help BPL pay off its fuel arrears to Shell.

NOTICE

Guavaberry Advisory Ltd. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Guavaberry Advisory Ltd. is in dissolution as of December 21, 2023 Lighthouse Corporate Services Ltd. situated Offices at Unit #3, Pineapple Grove, Western Road, Nassau, Bahamas is the Liquidator LI Q U I DAT O R ______________________

PAGE 6, Friday, December 22, 2023

THE TRIBUNE

Prove services exports deserve VAT-free rating

FROM PAGE B01 said: “The taxpayer required a ruling on the VAT treatment of the provision

of accounting, financial and other professional services by the taxpayer to clients in various scenarios. The

CROSSWORD PUZZLE Monday, December 25th, 2023 Merry Christmas

taxpayer provides audit, accounting, financial advisory, tax, consulting and risk advisory services.” They added that the supply of accounting or similar services is treated as an export from The Bahamas, and thus ‘zero rated’ and does not attract VAT, when the client or recipient “uses or obtains the benefit or advantage of the supply outside The Bahamas”. This could involve an audit or something required by overseas regulators, the acting comptroller explained by way of example. “However, where the recipient of the supply uses or obtains the benefit or advantage of the services within The Bahamas, the supply is standard rated for VAT,” they said. “The VAT treatment of the audit services in each of the scenarios is therefore based on where the recipient is using the services or where the recipient obtains the benefit or advantage of the services. “As a general rule, where services are provided to an entity that is established in The Bahamas, the services are prima facie deemed to be used in The Bahamas. Accordingly, if the audit services are required for purposes outside The Bahamas, the taxpayer must obtain from the recipient - and have available for inspection by the Comptroller - records to support the treatment of the services as zero rated.” The accounting firm had put forward several scenarios for adjudication by the acting VAT comptroller variously involving a Bahamas-domiciled trust, IBC, mutual or investment funds, and a company that operates locally but will use the services provided to serve international clients. In the first three cases, all operations, assets, bank accounts,

directors, shareholders and settlors/beneficiaries are based overseas. Tackling the trust first, the acting VAT comptroller said it was a separate legal entity from its settlors and beneficiaries, and is therefore treated as the consumer of audit services. “In the circumstances where the trust has been established in The Bahamas and is administered by a local Bahamian trust company, the audit services are deemed to be used in The Bahamas,” they ruled, thus attracting 10 percent VAT. In the case of the IBC and the mutual fund, the acting VAT comptroller said tax treatment is based on the reason for why audit and other services have been sought. “If the audit services are being provided to satisfy statutory obligations of a regulator in The Bahamas or are otherwise being used in The Bahamas, then the services are subject to VAT at the standard rate,” the ruling said. “On the other hand, if the audit services are being provided to satisfy obligations of a regulator outside The Bahamas, or are otherwise required for purposes outside The Bahamas, then the services are VAT zero rated.” As for the company with international clients, the acting VAT controller said: “The audit services are standard rated for VAT. The audit services are being provided to the company, which the company uses in the operation of their business within The Bahamas. It is irrelevant whether some of the clients of the recipient company are international clients.” The ruling was effectively back-dated to March 3, 2023, as the time from when it takes effect.

NOTICE NOTICE is hereby given that ALEX FORTILIEN, East Street, 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 15th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

THURSDAY, 21 DECEMBER 2023

BISX ALL SHARE INDEX:

CHANGE

%CHANGE

YTD

YTD%

2850.20

0.14

0.00

205.14

7.76

(242) 323-2330 (242) 323-2320

BISX LISTED & TRADED SECURITIES 52WK HI 6.95 50.00 2.76 2.70 5.74 7.00 10.80 4.70 12.21 5.50 10.25 14.50 5.48 10.60 11.67 4.20 18.25 4.75 12.80 17.33

52WK LOW 3.88 40.06 2.55 2.00 2.56 6.30 8.69 4.00 10.21 3.30 8.50 10.65 2.74 10.00 9.16 3.67 17.00 3.65 11.00 15.76

SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank (Bahamas) Limited Focol Finco J. S. Johnson

SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ

LAST CLOSE 4.95 41.19 2.76 2.00 4.25 7.00 10.62 4.20 11.01 5.45 10.20 13.30 6.92 10.50 8.93 4.20 17.75 4.75 12.73 15.82

CLOSE 4.95 41.19 2.76 2.00 4.25 7.00 10.62 4.20 11.01 5.45 10.20 13.30 6.99 10.50 9.02 4.20 17.75 4.75 12.73 15.82

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.07 0.00 0.09 0.00 0.00 0.00 0.00 0.00

1.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.09 100.05 100.41 100.12 100.10 96.10 99.87 100.00 100.81 97.15 100.14 100.03 100.23 100.36 100.65

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

VOLUME 500

775

5,000

200

EPS$ 0.239 0.932 0.000 0.140 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631

DIV$ 0.170 1.260 0.020 0.080 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610

P/E 20.7 44.2 N/M 14.3 N/M N/M 28.8 -9.6 78.6 29.6 22.7 18.4 68.5 22.5 14.0 5.8 21.8 23.4 13.6 25.1

YIELD 3.43% 3.06% 0.72% 4.00% 0.00% 0.00% 2.45% 0.00% 0.00% 2.20% 2.16% 5.41% 6.21% 0.57% 3.64% 5.71% 3.04% 2.53% 1.57% 3.86%

PREFERENCE SHARES 1.00 1.00 10.00 1.00

1.00 1.00 10.00 1.00

Bahamas First Holdings Preference Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B

BFHP CHLA FBBA FCLB

0.000 0.000 0.000 0.000

0.00% 6.25% 7.00% 6.50%

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited

SYMBOL FBB22 BFHB

VOLUME

INTEREST Prime + 1.75% 6.25%

MATURITY 19-Oct-2022 30-Sep-2025

6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 4.53% 4.38% 4.62% 4.65% 4.27% 5.60% 6.40% 4.88% 4.87% 5.40% 4.40% 4.69% 4.56% 4.33% 4.53%

20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 18-Jan-2025 10-Dec-2028 22-Sep-2031 22-Sep-2032 26-Jul-2024 15-Jun-2040 15-Feb-2051 26-Jul-2035 26-Jul-2037 13-Oct-2036 19-Oct-2030 22-Sep-2033 4-May-2026 26-Jul-2028 7-Sep-2025

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.09 100.05 100.41 100.56 100.10 96.61 98.80 100.78 100.81 97.34 100.14 100.03 100.23 100.51 100.65

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.09 100.05 100.41 100.12 100.05 96.61 98.80 100.00 100.81 97.34 100.14 100.03 100.23 100.30 100.65

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FL BGRS76025 BGRS FL BGRS90028 BGRS FL BGRS84031 BGRS FL BGRS84032 BGRS FL BGRS98024 BGRS FX BGR138240 BGRS FX BGR142251 BGRS FL BGRS81035 07/26/2035 BGRS FL BGRS81037 07/26/2037 BGRS FX BGR112036 10/13/2036 BGRS FL BGRS89030 10/19/2030 BGRS FL BGRS84033 09/22/2033 BGRS FL BGRS77026 05/04/2026 BGRS FL BGRS88028 07/26/2028 BGRS FL BGRS75025 09/07/2025

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGRS760257 BSBGRS900283 BSBGRS840315 BSBGRS840323 BSBGRS980244 BSBGR1380405 BSBGR1420516 BSBGRS810359 BSBGRS810375 BSBGR1120363 BSBGRS890302 BSBGRS840331 BSBGRS770264 BSBGRS880287 BSBGRS750258

MUTUAL FUNDS 52WK HI 2.68 5.13 2.32 196.33 202.32 1.80 2.05 1.91 0.98 10.20 13.51 7.80 16.64 12.84 10.77 16.27 11.22 14.89

52WK LOW 2.11 3.30 1.68 116.70 199.29 1.74 1.84 1.83 0.93 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Equity Fund CFAL Global Fixed Income Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Coralisle Bahamas Fund - Class D Coralisle Bahamas Fund - Class E Coralisle Bahamas Fund - Class F

NAV 2.68 5.13 2.32 184.64 202.12 1.80 2.05 1.91 0.96 10.23 13.54 7.82 13.45 12.24 10.69 N/A 9.19 14.10

YTD% 3.25% 4.82% 2.30% 2.50% 1.88% 1.47% 3.58% 1.46% 0.59% 0.48% -0.50% 1.08% 2.47% 1.49% 0.71% N/A 3.00% N/A

12 MTH% 3.96% 6.10% 2.76% 3.92% 1.88% 2.82% 7.12% 2.87% -0.60% 8.25% 13.68% 3.07% -6.88% 0.87% 0.53% N/A 25.60% N/A

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

NAV Date 31-Oct-2023 31-Oct-2023 27-Oct-2023 31-Oct-2023 31-Oct-2023 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2023 24-Jul-2023 24-Jul-2023 24-Jul-2023 24-Jul-2023 24-Jul-2023 24-Jul-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023

THE TRIBUNE

Friday, December 22, 2023, PAGE 7

FROM PAGE B01 impact that is having on the country, moving in that direction is going to change the whole circumstance,” he added. “It will change the way the rating agencies see the country or have an impact on the country’s ability to access additional capital borrowing if needed.” The IDB, in in its latest quarterly Caribbean quarterly bulletin that focused on the region’s debt issues, praised the Government for acting “soundly” to address fiscal concerns by developing a medium-term debt strategy and implementing operational reforms via the Revenue Enhancement Unit and Debt Management

DON’T LEAVE FISCAL CHANGE UNTIL ‘THINGS GETTING DICEY’ increase by 0.4 percent of GDP,” the IDB added. “This implies a primary fiscal surplus rising from $39m to $486m (3.3 percent of GDP). In this context, the fiscal goals set for this year should be monitored early in order to react swiftly by adjusting not only the budget goals but also the medium-term fiscal strategy.” Mr Edwards, agreeing with this analysis, said: “If you recognise something is not going to come in at the position you expect it to, make the early adjustment, monitor what’s going to happen, and not leave it to the back end when things get a bit dicey. However,

Office. However, it said the Davis administration’s fiscal targets for 2023-2024 and upcoming years “seem ambitious”, and called upon the Government to act early and swiftly if any changes were required to keep The Bahamas’ public finances on the consolidation path. The current Budget expectation is that revenues will increase 14 percent above those in the revised budget for fiscal year 20222023, equivalent to two additional percentage points of GDP in tax revenue in a single year, and that total expenditures will continue a downward trend but recurrent expenditure will

and the country experiences the kind of outlook that you foreshadowed when the Budget was presented last year.” The IDB suggested that The Bahamas could benefit from targeting the 66 percent debt-to-GDP ratio that the IDB has recommended all Caribbean tourism-based economies adopt. “Given the efforts that have been made to regain market confidence, the Government might benefit from adjusting its fiscal framework towards one more in line with the history and recent structure of the Bahamian economy,” it added. “An adjustment of that kind could be complemented with the introduction of an automatic

you look at it, it’s good advice that should be taken up by the policymakers. “If you look at it in election cycles, 2024 will be the third year of this administration and we understand from experience this is when administrations find themselves under pressure to bring projects to fruition, deliver on promises and meet additional spending demands, so there is going to be pressure on the need for discipline. “What the IDB is basically saying is be very careful, be very strategic, and do what is necessary to maintain discipline in the short to medium-term so nothing falls out of place

adjustment mechanism like the one implemented in Jamaica. Moreover, the necessity and the opportunity to build fiscal buffers could not be greater now that the Bahamian economy is in the middle of a tourism boom. “In this regard, the reestablishment of the Natural Disaster Fund - which in essence is also a macroeconomic stabilisation fund - will not only improve resilience against natural disasters but also help bring down the debt ratio toward more prudent levels. Last but not least, securing broad support for implementation of the ongoing and upcoming revenue and expenditure measures will be essential to achieving all these goals.”

NOTICE

NOTICE is hereby given that STEPHON HAKEEM MACENA, P.O Box SB 52453 #8 Sandilands Village, 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 15th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that KEREECE TAMARA BRANCHE, Hunt’s Road, Carmichael 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 15th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that JOHN ROCK, Eneas Jumper Corner, 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 21th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE WEATHER REPORT

5-DAY FORECAST

ORLANDO

High: 74° F/23° C Low: 59° F/15° C

TAMPA

TODAY

TONIGHT

SATURDAY

SUNDAY

MONDAY

TUESDAY

Breezy and nice with clouds and sun

Mostly cloudy with a shower

Breezy; a few afternoon showers

Breezy in the a.m.; clouds and sun

Cloudy

Partly sunny

High: 76°

Low: 67°

High: 77° Low: 69°

High: 78° Low: 69°

High: 79° Low: 69°

High: 80° Low: 70°

AccuWeather RealFeel

74° F

64° F

74°-66° F

78°-67° F

79°-69° F

83°-70° F

High: 72° F/22° C Low: 59° F/15° C

ABACO

High: 72° F/22° C Low: 69° F/21° C

10-20 knots

High: 74° F/23° C Low: 64° F/18° C

10-20 knots

FT. LAUDERDALE

FREEPORT

High: 74° F/23° C Low: 66° F/19° C

W S

WEST PALM BEACH

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

High: 73° F/23° C Low: 63° F/17° C

MIAMI

High: 75° F/24° C Low: 66° F/19° C

8-16 knots

Ht.(ft.)

Today

3:42 a.m. 3:55 p.m.

2.9 2.3

10:08 a.m. 0.1 10:09 p.m. -0.3

ALMANAC

Saturday

4:39 a.m. 4:52 p.m.

3.0 2.3

11:08 a.m. 0.0 11:01 p.m. -0.4

Statistics are for Nassau through 1 p.m. yesterday Temperature High ................................................... 75° F/24° C Low .................................................... 66° F/19° C Normal high ....................................... 79° F/26° C Normal low ........................................ 67° F/19° C Last year’s high .................................. 82° F/28° C Last year’s low ................................... 68° F/20° C Precipitation As of 1 p.m. yesterday .................................. trace Year to date ................................................ 53.48” Normal year to date ................................... 39.25”

Sunday

5:31 a.m. 5:45 p.m.

3.0 2.2

12:02 p.m. 0.0 11:50 p.m. -0.4

Monday

6:20 a.m. 6:35 p.m.

3.1 2.2

12:52 p.m. -0.1 ---------

Tuesday

7:06 a.m. 7:21 p.m.

3.1 2.2

12:37 a.m. -0.4 1:38 p.m. -0.2

Wednesday 7:49 a.m. 8:06 p.m.

3.0 2.2

1:22 a.m. -0.4 2:21 p.m. -0.1

Thursday

3.0 2.1

2:06 a.m. -0.3 3:03 p.m. -0.1

KEY WEST

High: 75° F/24° C Low: 67° F/19° C

ELEUTHERA

NASSAU

High: 76° F/24° C Low: 67° F/19° C

Ht.(ft.)

SUN AND MOON Sunrise Sunset

High: 76° F/24° C Low: 67° F/19° C

W S

10-20 knots

6:51 a.m. Moonrise 5:26 p.m. Moonset

2:01 p.m. 2:33 a.m.

Full

Last

New

First

Dec. 26

Jan. 3

Jan. 11

Jan. 17

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 77° F/25° C Low: 69° F/21° C

High: 76° F/24° C Low: 73° F/23° C

High: 76° F/24° C Low: 71° F/22° C

W S

LONG ISLAND

TRACKING MAP

High: 77° F/25° C Low: 72° F/22° C

8:31 a.m. 8:49 p.m.

Low

CAT ISLAND

10-20 knots

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

High: 74° F/23° C Low: 71° F/22° C

N W

TIDES FOR NASSAU High

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

UV INDEX TODAY

10-20 knots

MAYAGUANA High: 78° F/26° C Low: 71° F/22° C

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 78° F/26° C Low: 74° F/23° C

High: 77° F/25° C Low: 73° F/23° C

GREAT INAGUA High: 79° F/26° C Low: 72° F/22° C

12-25 knots

MARINE FORECAST ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday:

WINDS NE at 10-20 Knots NE at 10-20 Knots NE at 10-20 Knots NE at 8-16 Knots ENE at 10-20 Knots NE at 8-16 Knots ENE at 12-25 Knots ENE at 8-16 Knots ENE at 10-20 Knots NE at 8-16 Knots ENE at 10-20 Knots ENE at 10-20 Knots NE at 10-20 Knots NE at 8-16 Knots NE at 12-25 Knots ENE at 8-16 Knots ENE at 10-20 Knots NE at 8-16 Knots NE at 10-20 Knots ENE at 8-16 Knots ENE at 8-16 Knots NE at 8-16 Knots NE at 12-25 Knots NE at 10-20 Knots NE at 10-20 Knots NE at 8-16 Knots

WAVES 5-9 Feet 5-9 Feet 1-2 Feet 1-2 Feet 5-9 Feet 5-9 Feet 4-8 Feet 4-7 Feet 5-9 Feet 5-9 Feet 2-4 Feet 2-4 Feet 1-2 Feet 1-2 Feet 3-6 Feet 3-5 Feet 4-7 Feet 3-5 Feet 6-10 Feet 6-10 Feet 2-4 Feet 1-3 Feet 4-7 Feet 3-5 Feet 2-4 Feet 1-3 Feet

VISIBILITY 7 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 76° F 76° F 72° F 71° F 80° F 80° F 81° F 81° F 79° F 79° F 74° F 72° F 79° F 80° F 82° F 82° F 81° F 80° F 80° F 80° F 78° F 78° F 80° F 80° F 80° F 80° F

PAGE 8, Friday, December 22, 2023

THE TRIBUNE

SMALL BUSINESS ACT: ‘LET’S CLOSE THE DEAL’ FROM PAGE B01 Development Act.” Mr Turnquest, who also heads his own small business consultancy, Mark A Turnquest Consulting, told this newspaper that passing an MSME Act into statute law was vital to ensure “consistency and continuity” in government policy and strategy towards the sector and protect it from changes in administration every five years. “The problem is that every five years there’s always been a change in government strategy, FNM and PLP, and the problem is that the small businesses suffer,” he argued. “When one government does something related to small business development, when the next government comes to power they change the strategy and policy framework. “Because of that you don’t have any consistency. If you have consistency, then you have continuity in government policies that occur.

Once we have a Small Business Development Act it would understand the needs, wants and potential of all the islands - from Abaco and Grand Bahama in the north to Inagua in the south. “It would speak to funding where sums are earmarked for specific industries. That’s what I’m trying to tell all governments; that it’s so important to have consistency and continuity. If we keep on changing governments, and the policies and focus on MSMES, at the end of the day there will be no defined structure for it,” Mr Turnquest said. “That’s what’s been happening for the last 15 years. I cannot keep on saying it every year. Because there is legislation no government, when it changes, can completely throw the baby out with the bath water. They have to give reasons why they have changed. You cannot change your tune every five years.” To guard against election cycle-related disruption, Mr Turnquest called for the MSME Act to be incorporated into the National Development Plan. He argued that legislation would also help create a national definition for what is a micro, small and medium-sized business, adding that at present different banks, credit unions and others all have different interpretations. Some view $1m in annual sales as ‘small’. The SBRC founder said the MSME Act would also help to eliminate the “duplication” and waste from having so many government agencies involved in assisting small businesses. The Small Business Development Centre (SBDC), Bahamas Development Bank, Bahamas Entrepreneurial Venture Fund and Bahamas Agricultural and Industrial Corporation (BAIC) all seem to have overlapping responsibilities and ill-defined roles. “Nothing has worked over the past 15 years in reference to the strategy of small business organisations,” Mr Turnquest said. “Because

of that there’s always been duplication. We lose too much money in resources and time. “When you have too much duplication you have too many people doing the same thing. It’s a big problem. “Everybody talks that we have $250m in small business funding, $50m per year over five years, and because we only have $50m per year we have that amount spread all over the place. “We need a more focused strategy.” Mr Turnquest, in his latest strategy paper on the MSME Act, wrote that it will enable Bahamian small business and entrepreneurs to compete globally. “It will stimulate economic growth and mitigate the negative impact of future recessions on the Bahamian economy,” he added. “The MSME Act, from a domestic perspective, should provide the foundation on how to improve the economic conditions of The Bahamas. The MSME Act, from an international perspective, should attract foreign investors who want to partner with local entrepreneurs in fields like e-commerce, manufacturing, agriculture and information technology. These industries are tremendously underserved and underdeveloped.” Pledging that the Act “will revitalise the entrepreneurial spirit in all islands of The Bahamas,” he added: “The MSME Act will increase the national economic value of MSMEs in The Bahamas. In addition, its purpose is to synchronise and unify the efforts of the Government, financial lending institutions, NGOs, MSMEs and other stakeholders as it relates to small business development in The Bahamas. “Most importantly, the MSME Act will identify how local and international investors and entrepreneurs can qualify for incentive and stimulus programmes when it comes to financing and developing innovative products and services.”