Tamara Van Breugel on Value Added Tax (VAT) in The Bahamas

Citizens Must Unite To Be Heard In The Vat Debate

MY NAME is Tamara van Breugel and I am a citizen of the Commonwealth of the Bahamas.  I am a young working mother, my family owns a small business in the city, and I strongly believe there are responsible alternatives to VAT.

First of all let me say that I am by no means an expert on economic theory or taxation, I am not a representative of any political persuasion, and I have no special interest ties other than a special interest in the growth and prosperity of The Bahamas and of every Bahamian man, woman and child.

The Nassau Institute has kindly granted me a few moments in tonight’s programme to share with you my personal thoughts on VAT, and I am extremely grateful for their kindness.

Over the months since the announcement of the imposition of VAT I like many of you here tonight have been following the news media, scouring the internet and attending various speaking forums to better understand this new tax proposal.

In my research I have learned a few important things:

Our nation, has over many decades and successive administrations become excessively burdened by debt.  Our national debt is projected to exceed the $5 billion mark by the end of this fiscal year.  This is the equivalent of 61.5 per cent of our gross domestic product and nearing a danger zone of 70 per cent debt to GDP ratio.

Governments have not been effective in collecting existing taxes or in safeguarding public funds from waste and mismanagement.

The 2010 / 2011 auditor general report illustrates some of these collection gaps, identifying:

• 5,980 cargo manifests that had not been presented to Bahamas Customs for clearance

• $95 million in real property taxes went uncollected taking the total sum outstanding to $541.886 million

• $302,866 of unpaid fuel from the Ministry of Works

In the 2014 /2015 fiscal budget subsidies have been allocated as follows:

• $20 million to subsidise Bahamasair

• $20 million in subsidise to Water and Sewerage

• $7 million to the Bahamas Broadcasting Corporation

... Ok, you get the point.

The Bahamas is preparing for ascension to the Wold Trade Organisation by the end of 2014.  As a part of this process The Bahamas must commit to dramatically reducing import tariffs.  The expectation could be for an average peak tariff of approximately 15 per cent.  Down from the current average of 55 per cent.

To avoid the potential ill effects of a credit risk rating downgrade the government has determined that a Value Added Tax mechanism would be the best option to help our nation combat the double-edged sword of a swelling deficit and the need to reduce the revenue from tariffs.

And on top of that the government believes a swift implementation is required to steer us off the path of economic failure.  The increased revenue goal with the implementation of Value Added Tax is $200 million.

And so this in a nutshell defines the events that lead to us all being in this room tonight.

Early on when the idea of VAT was being mentioned I did not know much about it but I did recognise that for better or worse, this tax was destined to be the most significant adaptation our modern economy has ever seen.  I also started asking myself some basic questions like, what is this tax?  How does it work?  How will it work for us?

Like most, I waited and waited for the government to provide full details and education on how this tax plan would work.  But as the information was slow to come I started to reach out on my own to learn more.

Here is what I have found.

Firstly, VAT is a regressive form of taxation.

Burden

This means that the economic burden will be greater on households with lower incomes.  And while our customs duty system was also regressive, the VAT system does not seem to rectify this imbalance. As an offset to the regressive nature of this tax our government has provided for some VAT exemptions including breadbasket items, medical services and educational services.  Offering comfort to the most needy in our society through this bare-bones survival kit of exemptions implies to me that VAT planners do anticipate a raising tide of prices that would overwhelm our poorest citizens.

And then from there I start to wonder... when these struggling lower income households become burdened with higher prices on their non-exempt consumption what will they do to get by?  Take a second or third job?  Forego access to modern amenities like electricity, running water and telecommunications?  Lean more heavily on the social services network?  Or perhaps fall prey to the lure of white collar and blue collar crime?

Next, VAT will increase our cost of living.

Though the exact amount of this increase seems to become more and more difficult to define as we get closer to implementation, the estimates I have heard range from 3 per cent – 30 per cent and according to a Ministry of Finance official: “On the cost of living there will be some initial impact from the VAT but that initial impact will disappear in a very short time-frame, over six, eight years. That is not long,”

Can we as citizens really afford a cost of living increase now?  And could we endure it for six to eight years?

According to statistics released by the Central Bank of The Bahamas, 95 per cent of Bahamian dollar personal savings accounts have a balance of less than $10,000 and the average balance is $704.  Additionally a Ministry of Finance official recently disclosed that around 70 per cent of government payroll is dedicated to salary deductions which service consumer loans.

By the looks of it the People of the Bahamas may be just as cash strapped as the government of The Bahamas.

On a personal level, as I sift through my household bills I am always left to wonder will there be enough money to get through the month?  And the thought of any increase makes me scratch my head and wonder … where do they think this money is going to come from?  Will it come from a decision to cut back on my child’s education?  Will it come from a decision to shop only in the breadbasket aisles at the supermarket?  Or will I have to start making some even tougher decisions?

Additionally, VAT will increase the cost of doing business.

If you own a business that is just getting by today how will you handle it when your prices increase and your customer volume goes down?  Will you make the shift to lower quality products and services?  Will you make some tough decisions about which staff to let go?  Or will you start preparing your business exit strategy?

The other thing about doing business is that VAT will require businesses to divert a portion of their time and resources from usual business activities to take on the new and uncompensated role of tax collector.

Most VAT registrants will be required to install new systems and acquire the services of a professional accountant to implement and administer the tax.   Additionally the filings will be required on a monthly basis and amounts will be payable at the time the invoice is issued and not when payment is received.   How will businesses manage this new expense?  Do you think they will absorb it into their profits?  Or will they build it into the price? And beyond that, might some businesses even try to evade paying these taxes altogether?

These are just some of my findings from my research on VAT.  It seems however, that the only sure thing that comes out of each new discovery is even more questions. Regardless of where you live, how much you earn or who you voted for don’t you also have some questions?

I will admit I did learn one other thing through this process.  And that is that the people of Turks and Caicos were able to successfully convince their government to stall their VAT plans and implement alternative measures to get a handle on their economy.

Success

From what I can tell a few factors combined to make their effort a success.  Firstly they are a UK overseas territory, which obviously does not apply to us.  But what I also found out was that when ALL the people came together and spoke in a unified voice they were able to demand that their decision makers move toward alternative revenue generating and debt reducing strategies.

Based on this insight I believe that the VAT debate in The Bahamas has the potential to engage and unite our country like no other issue of our time.

In the Bahamian context, I believe that the road-map towards alternative economic strategies could include:

• Enactment of the Freedom of Information Act so that we can understand how our tax dollars are being managed.

• Full enforcement and collection of outstanding taxes

• Implementation of further reductions in government expenditure

• Develop near-term plans to relinquish under-utilised or unprofitable government assets and corporations

• Legislate strict conditions and limits under which future government debt could be approved

And if following these initiatives, additional tax revenue is still deemed necessary, I believe that a comprehensive economic impact assessment should be conducted to determine the appropriate economic and tax reform strategies our nation should implement.

Fellow citizens, in a time when we are being asked to forego some aspect of our quality of life to sustain our government through this fiscal crisis I believe that it is every citizen’s obligation to ask serious questions about how the financial affairs of their country are being managed and I also believe it is a citizen’s right to receive full and serious answers from its government.

Additionally, I believe it is only through the unity of people power that we can move this conversation with our government forward.

I know that there are many concerned groups forming and strategising on this issue as we speak. These groups will vary in their objectives, their access to professional advice, and financial resources.

However, what if we consider for a moment that the most powerful and important participant in this discourse could be THE PEOPLE?

At the moment, the people are in general disconnected, distracted by the daily grind and without adequate information on legislation that will impact their lives.

Right now the people need several things to be effective – they need to be focused, they need to be educated about VAT in plain language and they need to be given a forum to express their opinions to their decision makers.

To assist in this process of engaging the people on this issue, a group of young Bahamians called Citizens for a Better Bahamas aims to launch a broad based educational campaign on VAT throughout our community streets, through social media and on our webpage: www.citizensforabetterbahamas.org.

Our core campaign objective is to launch a petition both on-line and on the street specific to each constituency and addressed directly to each member of parliament.  The petition will request each representative to vote NO to a VAT implementation of July 1 and to consider responsible alternatives.

We understand that this is a tall order on a tight time-line but we believe it is through activities like these that we will be able to help our decision makers know that we are all here, we are all aware and we wish to be heard.

You are here tonight because you are aware and you want to know more. But is your neighbour aware? Or your co-workers? Or your extended family?  It will only be through a re-connection of our entire community that we will have our voices heard.

Citizens for a Better Bahamas is poised to become that re-connection point for our nation. But we recognise that on this issue there is a need to move quickly and we recognise that we cannot do it alone.  We need YOU, EACH AND EVERY ONE OF YOU, we need your time, we need your talent, and yes we need your financial support.

We each have a vested interest in the outcome of the VAT debate.  If we put aside our differences of background and social status and denomination and political affiliation and bind together as Citizens of the Commonwealth of the Bahamas I believe our voice will be heard and acknowledged by our decision makers.

It was Margaret Meade who once told us “Never believe that a few caring people can’t change the world.  For, indeed, that’s all who ever have.”

Fellow citizens, if you believe in this simple idea I ask that you join us.  Together we are better and together we can build a Better Bahamas.

November 17, 2013

What do you think? Send your comments to pnunez@tribunemedia.net or join the conversation on tribune242

A report on the administration of justice in The Bahamas ...and improving the justice system in The Bahamas

IDB Concerned With Bahamas Justice System

by Ianthia Smith
The Bahama Journal




Officials at the Inter-American Development Bank (IDB) have expressed major concerns with the administration of justice in The Bahamas, particularly as it relates to the low conviction rate and the fact that more than 300 accused murderers are out on bail.

In fact, the IDB is so concerned with the dismal statistics that the organisation has pledged to pump $250,000 into improving the justice system in The Bahamas.

In a recent report, the IDB said during the 2005 to 2009 period only 5.1 per cent of murder cases resulted in convictions, adding that within the last five years, 305 accused murderers have been released on bail.

“This situation can partly explain why The Bahamas, although superior to the regional average, has recently shown a marked decline in its values for the world governance indicator related to the rule of law,” the document added.

That figure dropped from more than 85 per cent in 2007 to just over 65 per cent in 2011.

The report went on to point out that in The Bahamas there is consensus about the limited institutional capacity of the justice system to respond to the public’s demands and added that this situation is contributing to the recent dramatic increase in incidents of violence and crimes that remain unresolved amid an increasing judicial backlog and a diminishing number of convictions.

“Today, few people doubt that sustainable development depends on the credibility of the legal system, the quality of the legal framework, the effective protection of property rights and the honesty, effectiveness and efficiency of the agencies in charge of applying the law to specific cases,” the document added.

“To properly perform its role, a justice system should also be expeditious, which means that the system effectively completes cases in a reasonable time.”

It is for that reason that the IDB has approved technical cooperation for a pilot project to support the government’s Swift Justice Programme and has committed to giving The Bahamas $250,000 and an additional $24,000 local counterpart funding, to assist with this fight.

To improve court reporting and transcript generation, which the IDB notes still consists of a transcriber, while the modern digital court reporting includes broadcast quality microphones and digital recorders, the IDB has committed $110,00 while another $77,000 will be to support the implementation of an integration justice information system with an efficient business model that will seek to strengthen cooperation, coordination and communication among the Attorney General’s Office, the police and the judiciary and $66,000 will go towards the reduction of the Supreme Court’s backlog.

But with this technical cooperation comes risks, the IDB noted that the government and judiciary may not be sufficiently coordinated, there may be difficult interaction between the different government agencies as well as delays in execution due to a lack of knowledge and experience with IDB-financed operations.

November 20, 2013

Jones Bahamas

The private sector in The Bahamas was challenged to present a viable alternative to Value Added Tax (VAT) ... by Prime Minister Perry Christie

Pm Challenge On Vat Alternatives

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

PRIME Minister Perry Christie yesterday challenged the private sector to present a viable alternative to Value Added Tax.

 

Responding to the concerns of businessmen worried about how VAT will affect the cost of doing business, Mr Christie pointed out that after the public rejected the option of boosting revenue by regulating web shop gaming, the government had to find some form of taxation to sustain development.

 

“We require additional revenue to be able to meet debt servicing obligations,” he said, “we need additional revenue to be able to have a resurgence in the economy, we need additional revenue for infrastructural development. The question is, when the government sought to seek the Bahamian people’s approval on the referendum, the Bahamian people indicated no.

 

“The government then brought forward what has been in play for a very long time – Value Added Tax. If there is serious objection to it, the government must listen and the government must give consideration, but the government surely would not be expected to just listen to those who oppose without having an alternative.

 

“Everyone in the country must know that to sustain our development, for there to be sensible, serious, forward looking discussion, it has to be accompanied – particularly from people who are involved in the economy – it has to come with alternatives.

 

“I would expect therefore if [businesses] are going to present me with a paper, they will be arguing to agree on a different form of taxation.”

 

Mr Christie has hinted that he might be open to postponing the VAT target implementation date of July 1, 2014, if the government is not prepared for it.

 

He said the private sector needs to realise it is on a collision “cause” with government over the need for additional revenue, and asked “what is the alternative” to VAT?

 

The Prime Minister added that he was not at all concerned over the level of angst being expressed by the business community regarding VAT and the potential problems it might cause for individual businesses.

 

“Quite frankly,” he said, “I am appreciative of all of the discussions that are taking place on VAT.

 

“At some stage I am sure the business community, (will recognise) that we are on a collision cause – c.a.u.s.e – with respect to this matter, that we need additional revenue.”

 

The government is proposing to implement VAT on July 1, 2014, at a rate of 15 per cent, with the hotel industry to be subject to a lower 10 per cent rate.

 

Mr Christie said, however, that ultimately, he will have the final say on implementation.

 

For their part, the co-chairs for the private sector’s Tax Coalition have praised indications that the Prime Minister was open to postponing VAT implementation day as “fantastic”, warning it was “paramount” that the economy be protected.

 

Pointing out that the government would not achieve its revenue-raising objectives if the economy “went to hell in a hand basket”, Robert Myers said he was interpreting the indications positively, and as a sign that the government was listening to the private sector’s concerns.

 

November 08, 2013

 

Tribune 242

 

Caribbean Blog International

 

Value Added Tax (VAT) and Tax Reform in The Bahamas

By Dennis Dames:

We, the Bahamian people must realize that we cannot continue to borrow more than we are collecting in taxes.

We should appreciate as one people that something has to give now as it relates to getting our fiscal house in order.

Either we increase taxes, or cut spending significantly.  We do not have years left to answer that question, and to take sound and prudent fiscal action, my brothers and sisters.

So, that is why we are debating the impending institution of value added tax in The Bahamas; to help us to live by a balanced budget until further notice.

This Bahamian has already accepted the reality that we need some kind of tax reform in The Bahamas, so that the government could collect more money on our behalf, in order to contain the outrageous deficit spending – year after year.

Our National debt is projected to officially double in the seven years; from $2.4 billion in July 2007, to $4.9billion to June of 2014 – coming-up.  The fiscal deficit for thepast two years is reported to be more than $500.00 million.

It is a pity that the education process on the principles of value added tax (VAT) did not begin when the Bahamian government had signed on to the various international agreements years ago, like: the Economic Partnership Agreements (EPAs) with the European Union, and the World Trade Organization (WTO).  We know it was coming nonetheless, because the Progressive Liberal Party (PLP) and the Free National Movement (FNM) made it known that value added tax (VAT) is in the pipeline.  We went through the 2012 general election - recently, and the electorate voted overwhelming for the PLP and FNM.

So, what’s the problem?  Who’s shocked, who’s surprised, who’s outraged and who didn’t know that value added tax (VAT) was on the horizon?  The FNM has reminded us recently, that if they were elected in 2012, that they had plans to employ value added tax (VAT) by 2015 or in thirty-six (36) months; the PLP plans to install value added tax (VAT) by July 2014 or in twenty-two months of their 2012 general election victory.

I think like the pundit, Dr. Gilbert Morris in the Turks and Caicos Islands, when he sounded in that nation’s context, that it was not that the TCI people are against value added tax (VAT), but it was felt nationally, that more time was needed to prepare the people for the realization of value added tax (VAT).  The United Kingdom was seen to be rushing the brush and had to eventually relent, in the wake of public pressure from every political house - and cancel the Turks and Caicos Islands’ value added tax kick-off date of April 01, 2013.

Our Prime Minister said publicly, that he is open to delaying The Bahamas’ value added tax (VAT) execution date, which is scheduled for July of 2014.  It’s a great gesture, Mr. Prime Minister.  Now it’s time for all Bahamian people to face the music of looming tax reform in our country, and let’s start dancing and debating.  Our children and the generations yet unborn, deserve to enjoy the fruits of our wisdom.

November 13, 2013

Value Added Tax (VAT) is viewed by governments as an attractive option ...as it taxes both goods and services

VAT: A regional perspective

Bahamas behind region in implementation of VAT

By CANDIA DAMES
Guardian News Editor
candia@nasguard.com

A 15-minute video on the impact Value Added Tax (VAT) has had on the twin-island state of St. Kitts & Nevis has been making the social media rounds in recent weeks, posted and re-posted by many Bahamians linked in the online community.

The video, moderated by Rev. Conrad Howell of the Turks and Caicos Islands (TCI), was created ahead of what had been the planned April 1, 2013 implementation of VAT in TCI.

The video features a number of prominent citizens of St. Kitts & Nevis, including business leaders, former Minister of Finance Richard Caines, and also everyday citizens outlining the “negative” impacts VAT has had on their economy since its implementation three years ago.

Business leaders speak of having to close their businesses, of the sharp and sudden rise in the cost of living.  Other citizens speak of the stunning decline in their quality of life.

Such reports have increased fears among an already worried Bahamian population preparing for the introduction of VAT at a rate of 15 percent on July 1, 2014.

In the absence of information on the likely impact of VAT on their way of life, and on their economy, many Bahamians view this video as a model of things to come, notwithstanding recent reports from the International Monetary Fund (IMF) that St. Kitts & Nevis is seeing signs of an economic recovery.

Calvin Cable, executive director of the St. Kitts & Nevis Chamber of Industry and Commerce, told National Review that VAT had a “multiplier effect in terms of hardships on the populace”.

Cable said a consumption tax was removed and the VAT of 17 percent was introduced.

Two other taxes, the customs duty and the customs service charge, were retained in addition to the 17 percent VAT, he explained.

“It was tremendous on the cost of living,” Cable said. “You could have felt it in the number of packages being taken out by householders out of the supermarkets because the prices of goods went up pretty high, maybe about 25 percent overnight.”

As a result of VAT, many people in St. Kitts & Nevis cut back significantly, he said; many of them eliminated all luxuries.

“People stopped going out to restaurants to eat and that sort of thing because it was proving to be too much to carry,” he said.

VAT is viewed by governments as an attractive option as it taxes both goods and services.

The current narrow based tax system in The Bahamas has long been in need of an overhaul, according to government officials and various international agencies examining The Bahamas’ tax structure.

Cable also noted that prior to the implementation of VAT, there were very few charges or taxes on services in St. Kitts & Nevis.

“And so, what the population had to deal with now was that services were being charged VAT, which was not the custom before,” he said.

“For instance, doctors fees, lawyers fees, services in the tourism sector — and I know The Bahamas is big on tourism.  For instance, rented cars had to pay the 17 percent.”

Cable said VAT provided a “windfall” for the government in taking from the services sector, “but most of that was coming out of the local population”.

“So the amount of disposable income that they had on their side was drastically reduced and the buying power was drastically diminished,” he said.

In St. Kitts & Nevis, VAT is credited with bolstering the government’s fiscal position, but Cable said it happened “on the backs of the local people”.

Prior to the implementation of VAT, the country experienced debt levels above 200 percent, which made it one of the world’s most indebted countries.

The debt to GDP ratio is now inching closer to the 100 percent mark.

St. Kitts and Nevis’ Minister of Information Nigel Carty previously pointed to the “herculean effort that has been exerted to bring great relief to the country’s fiscal position at such an economically challenging time”.

IMPACT

While The Bahamas’ debt situation has not been as dire as that of St. Kitts & Nevis, it has reached a position where it is now unsustainable.

The Bahamas government has outlined its own efforts to bring relief to this country’s fiscal position.

As we noted in this space last week, government debt as at June 30, 2014 is projected to be $4.9 billion, compared to $2.4 billion as at July 2007.

Over the last two fiscal years, the government has seen a total deficit in excess of $500 million.

Almost one out of every four dollars in revenue collected by the government must be allocated to pay the interest charges on the public debt and cover the debt repayment.

With a significant change in the country’s tax system on the horizon, The Bahamas government has not yet produced any studies to show the likely impact VAT will have on the cost of living.

In every sector, there are understandably questions about how this new regime will affect business.

The man and woman on the street are equally concerned, as they already exist in a climate of high unemployment, where many are finding it hard to meet their obligations and disposable spending has been stretched to the limit.

The government is now asking citizens to shoulder the burden of reversing a burdensome debt situation.

Again, there is no doubting that it is time for action.  The chosen route is of course value added tax, which the government says is a central element of its tax reform strategy.

A new IMF report “Tax Reforms for Increased Buoyancy”, which was prepared for the government, notes that The Bahamas has low taxes compared to the rest of the world, excluding Central American countries.

It points out that many countries in the region have already introduced VAT, thus providing “a stable source of tax revenues”.

The report notes further that almost all the countries in the region have taxes on income and profits.  Furthermore, they have high excises on petroleum products.

While The Bahamas is only now moving in the direction of VAT, several of its Caribbean neighbors — among them, Barbados, Jamaica, Trinidad & Tobago — implemented VAT more than a decade ago.

Speaking of the Barbados experience, Lalu Vaswani, president of the Barbados Chamber of Commerce and Industry, described VAT as a “very efficient means of collecting tax as it increases the base on which the taxes can be collected”.

“I think it has been a positive impact, although it was not without its challenges,” Vaswani said in an interview with National Review.

Vaswani said that prior to the implementation of VAT in Barbados in 1997, the country had as many as 11 different types of duties or imposts that could be charged on imports.

“The increased effectiveness of collecting revenue gave the government more scope to do their development projects,” Vaswani said.

“From a business perspective, there are always anxieties associated with changes, and it is always desirable that there is a maximum amount of consultations even when the final positions are not known.

“So there is an understanding from ground level what are the goals, specific objectives and how you propose to do it because very often what you theoretically are trying to do may have a unique challenge, which may be identified before it is implemented and resolved and prevented.”

Former Barbados Prime Minister Owen Arthur noted in a 2010 interview with Erasmus Williams, press secretary to the prime minister of St. Kitts and Nevis, that high debt levels are inevitable in the absence of a tax base to generate the revenue needed to run a country.

“I supported the VAT when I was in opposition in Barbados because I thought it stood the test of reasonableness, but it was absolutely necessary,” said Arthur, whose administration introduced VAT.

“You’re living in a set of countries where year by year, period by period, governments will have to remove import duties.  What are you going to replace them with? And that is the basic question.”

Arthur said VAT created the basis for sustained growth “without fiscal difficulties”.

“It allowed us to be able to introduce programs to aggressively mount and sustain policies to eradicate poverty and we did that by creating the base for sustainable growth in the country,” he said.

NECESSARY EVIL

The most recent Caribbean country to implement VAT was St. Lucia, which did so just over a year ago at a rate of 15 percent.

Gerard Bergasse, president of the St. Lucia Chamber of Commerce, Industry & Agriculture, noted that VAT pulls more people into the tax net.

“When you are relying on other forms of taxation, they are not as broad based, so you have a much narrower tax base, which means that the tax on those people has to be higher to achieve your revenue targets,” Bergasse told National Review.

“But when you have a broad based tax like VAT, it means that everybody is contributing, so it makes it fairer.  And it does not take the fiscal tool out of government’s hands because they can still zero rate items, or zero rate a basket of goods that they feel would help less advantaged people.”

The Bahamas government’s White Paper on Tax Reform notes that zero-rating a supply implies applying a zero VAT rate and allowing credits for VAT paid on inputs.

It says that zero-rating should definitely be applied to exports as a VAT is designed to tax only domestic consumption.  Other than that, zero-rating should be strictly limited, if utilized at all, the document says.

Bergasse said that based on anecdotal evidence, many people would say that VAT was a necessary evil in St. Lucia.

“I still believe that VAT was the right thing for the government to have done and it’s moving in the right direction,” Bergasse said.

He said while the government is not now experiencing a huge windfall, as far as he is aware its revenue targets have been met.

Bergasse said the Chamber of Commerce supported the implementation of VAT from the beginning and was a part of the government’s pre-implementation VAT team.

Bergasse pointed to the need for proper consultations ahead of the implementation of VAT.

But he recognized that making VAT understandable to a cross-section of people is “very difficult”.

“I will warrant that there are still business people in St. Lucia who still do not understand VAT,” Bergasse said.

“...It is a bit of a complicated tax, so it does take people a while to wrap their heads around it and it does make a difference the way your legislation is structured.  We didn’t get the legislation until very late in the day and even after we got the legislation there are the regulations that go along with it that are very important, because the legislation is the ‘what’; the regulations are the ‘how’.”

He noted that the fundamental change created by VAT is that the business community is changed from being solely taxpayers to being tax collectors.

When properly structured, VAT is a tax on consumption, not business.

In The Bahamas, the proposed VAT legislation and regulations have not yet been released to the public, so the specifics are still unknown.

The government, meanwhile, is planning on increasing public education and awareness in a series of meetings set to begin this week.

Prime Minister Perry Christie has said the July 1 implementation date is not set in stone and he, as minister of finance, needs to be satisfied that businesses and the country at large are ready for the implementation of VAT.

As the government prepares to intensify public education on VAT, it is hoping to quiet what appears to be growing public sentiment against VAT.

November 13, 2013

thenassauguardian

Caribbean Blog International

Father Sebastian Campbell says: Be real with the numbers business ...It is here to stay ...Effectively tax the number houses

 Priest: Tax Web Shops

  by Rogan Smith




A leading clergyman is suggesting the government tax the illegal number houses as a way of generating revenue and offsetting the impending value added tax (VAT).

The government has announced plans to introduce VAT on July 1, 2014 as a means of broadening the country’s tax base.

The Bahamas will apply a 15 per cent VAT to a broad range of goods and services.

In the past, many Bahamians have suggested the government tax the web shops, which are raking in millions of dollars annually.

“Be real with the numbers business. It is here to stay. Effectively tax the number houses,” said Father Sebastian Campbell, rector at St. Gregory’s Anglican Church.

“Research has already shown that this is an oasis of wealth sitting in our midst. Governments sometimes must make hard and unpopular decisions for the good of the country; go for it. It is common knowledge that many involved in the numbers business voted against the referendum in January. By so doing they guarantee greater gains for themselves.”

In January, the Christie administration held a referendum to give Bahamians an a chance to vote to regularise the numbers industry.

The majority of Bahamians rejected the referendum. A legal battle has ensued since then with the government taking steps to shut down the numbers racket and the attorneys for the web shop operators attempting to keep it open.

“In January, please be honest and admit, we had an opinion poll, it was loaded with flaws. I urge the government to do the most appropriate thing, lead. The resource is here; let’s tax it for the common good. As parliament goes into the debate of gaming now is the time to level the playing field. Do not give away rights to foreigners that Bahamians don’t have in their own country,” he said.

“This is a hot button topic; it is not prudent to do it near an election, therefore now is the time. We have no luxury in waiting for this one. By 2017 Bahamians would have experienced the results and government would have had time to tweak and show the public the benefit of the new regime.”

Father Campbell said The Bahamas’ financial system must be overhauled, as is it is “totally inadequate and not real to the times.”

In fact, he said it is “miraculous” that Bahamians have survived so long without radically overhauling its tax structure.

He also suggested the government make improvements in the area of tax collection. Millions of dollars, he said, are alleged to be outstanding.

“We must confess our failure to successfully achieve maximum results in tax collection. VAT, mind you, is said not to be a progressive form of taxation, I am no tax expert, but I’ve heard the cry from friends in the region that have it,” he said.

“Income tax is said to be more progressive and will cause those who have more to carry a greater portion of the burden as opposed to a VAT, where all men will be equal in contribution. Bahamians ought to also beware that some countries in our region have both VAT and income tax. Yet remember, too, The Bahamas is an archipelago. We have to repeat maybe some 60 plus times that which regional countries might only have to do once.”

Father Campbell also called on his colleagues within the church to prepare their congregations and the nation as a whole for this reality.

“This is where leadership is warranted now in our development. It is not the duty of only the government and politicians in educating our people and to give leadership. The church must assist in leading the way and not get in the way of this necessary, progressive, albeit radical move. It might be a good gesture for government to launch its plan education programme with the church,” he said.

VAT has been implemented in 140 countries around the world.

November 06. 2013

The Bahama Journal

Caribbean Blog International

The Coalition for Responsible Taxation on “phasing in” Value-Added Tax (VAT) over a three-year period in The Bahamas

Tax Coalition: Phase Vat In Over Three Years

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government should examine “phasing in” Value-Added Tax (VAT) over a three-year period, a co-chair of the private sector’s Coalition for Responsible Taxation warning: “You can’t implement taxes to the peril of the economy.”

Robert Myers, speaking to Tribune Business as the Coalition released its VAT ‘Queries and Recommendations’ submitted to the Government on October 28, reiterated that the “fear” in the private sector about the consequences of tax reform stemmed from the Government’s failure to-date to prove adequate information and consultation time.

Agreeing that the Government could be “100 per cent right” over the direction it was taking with tax reform, Mr Myers said it needed to show this was so by “sharing” all the studies and specifics it possessed.

“This is a fundamental change in this country’s way of doing business,” he told this newspaper. “This is a fundamental change in the way everyone lives and does business.

“Let’s get all the facts on the table and hash it out. There’s no need top throw rocks at each other. We all benefit from the right solution. Let’s make the right decision as a nation.”

The Coalition identified 12 areas of ‘macroeconomic concern’ in its latest missive to the Government over VAT, and Mr Myers told Tribune Business: “First and foremost, you cannot implement taxes to the peril of the economy.

“That is the primary objective. There are just too many examples, in Barbados, Grenada, where their economy was troubled. They tried to resolve it by introducing new taxes, and that sent the economy backwards.”

Mr Myers said Grenada, for example, was now reducing VAT on construction materials and providing incentives to encourage contractors after the tax’s implementation “killed” the sector there.

While there was no evidence to suggest something similar would happen in the Bahamas, he added: “It’s just to say that if this is happening elsewhere, maybe we should take a look at it.”

In the ‘Queries and Recommendations’ sent to the Government, the Coalition reiterated that VAT’s implementation was “a seismic change to the system” that meant both the Government and private sector needed adequate time to prepare.

Restating its previous call for VAT implementation to be delayed for at least 12 months after the relevant legislation, regulations and Tariff Schedule had been released, the Coalition added: “Consideration should be given to phasing in VAT over a reasonable period, for example, three years, to minimise the potential negative impacts of inflation.”

Government minister and Ministry of Finance officials, particularly those working on VAT’s implementation, have suggested that the Bahamian business community’s fears are “unwarranted” and, in some instances, amount to ‘scaremongering’.

But Mr Myers and the Coalition have both pointed out that this has resulted directly from the ‘information vacuum’ created by the Government’s failure to publish the specifics on VAT, including studies on its likely impact that have been done - or are being done - by the likes of the International Monetary Fund (IMF) and Inter-American Development Bank (IDB).

Acknowledging that this had sometimes resulted in “hysteria and one-sided debate”, the Coalition added: “The lack of such information to date has contributed to the paranoia and apprehension of the business community and consumers.”

Mr Myers told Tribune Business: “There is this perception, fear in the marketplace, and you are having the result of not providing adequate time and information.

“Maybe you [the Government] know what we don’t know, but share it. Maybe you’re 100 per cent right. We don’t know, but share it. It’s so frustrating.

“You can already see certain businessmen, the fact that they’re now backtracking themselves on certain projects, is not good for the economy. That creates uneasiness.”

The Coalition, meanwhile, told the Government that VAT’s inflationary impacts, which has admitted itself, could have “consequences” for the Bahamas’ economic recovery.

Calling on the Christie administration to collaborate with the Bahamian private sector “to obtain the greatest possible buy-in by registered businesses and consumers”, the Coalition warned: “The majority of businesses have been experiencing an inability to increases prices in the past few years.

“Gross profit and net profit margins have been reduced following the recession, with no evidence of an ability of consumers to withstand price increases.

“Low net profits or net losses threaten the viability of small and medium-sized businesses.”

Mr Myers praised the Government for containing inefficiency, waste and shrinkage in its spending, and agreed that it needed more revenue to tackle its chronic deficit/debt problems, and the imbalances in the public finances.

But he warned: “To make a mistake and it backfires.... Do you want growth to slip by 2 per cent, 4 per cent, slip into negative growth? I don’t think that’s the desired result.

“Maybe take longer to get into this. No one says you don’t need more revenue, but let’s be measured.”

And the Coalition co-chair added: “We’ve got to make sure this is right for us, and not just right for the business community or right for the Government.

“It’s got to be right for the consumer, right for the private sector and right for the Government. Right in the broadest sense of the word. It’s just not been done. That kind of inclusiveness is not there.”

October 04, 2013

Tribune242

Peter Nygard says that the Official Opposition - Free National Movement’s (FNM) politicization of the Stem Cell Therapy Bill was “small-minded” ...and the group does not deserve to be in government

Nygard slams FNM on stem cell debate

By TRAVIS CARTWRIGHT-CARROLL
Guardian Staff Reporter
travis@nasguard.com

Controversial Lyford Cay resident Peter Nygard said earlier this week that the Free National Movement’s (FNM) politicization of the Stem Cell Therapy Bill was “small-minded” and the group does not deserve to be in government.

Nygard appeared on the More 94.9 FM radio show “Real Talk Live” with Ortland Bodie on Monday and said he was shocked when saw the issue become so politicized.

“This should never, ever be politicized,” he said.

“I am so in shock that this should ever become politicized.

“My goodness, a big issue like this should be above politics.  Even people like [FNM Deputy Chairman Dr. Duane] Sands who is a key doctor in the committee.

“I think he was in shock to see this become politicized within his own party.

“This is such a disfavor for the Bahamian people, for the Bahamian nation for having an issue such as this become politicized and then doing it for the wrong reasons.

“In my mind, the people, they don’t even deserve to be in government.  It’s just so small-minded.

“I actually was working on this before Prime Minister Christie with the other government.  I tried to bring this forward at that time and they chose not to pay the same kind of attention to it that Prime Minister Christie did.”

Sands was a member of a government-appointed task force that reviewed the stem cell issue and presented recommendations on how the procedures could be developed in the country.  Those recommendations were instrumental in the drafting of the law.

FNM Chairman Darron Cash said yesterday that the party is not surprised by Nygard’s statements.

“We simply say what else is to be expected?”  he said in a statement.

“He knows that he will always be clothed in the protection and comfort of the prime minister.”

He added: “One day soon there will be a new sheriff in town.”

FNM Leader Dr. Hubert Minnis blasted the government for “rushing” stem cell legislation through Parliament during debate on the bill in July.

The party later suggested that the government was pushing the law as a payback to Nygard, an assertion the government denied.

Nygard told reporters in July that he had no personal self-serving interests in the government passing the Stem Cell Bill.

However, in a recent YouTube video Nygard claimed that he “initiated and helped to write the stem cell legislation” which was eventually passed.

Parliament passed the Stem Cell Therapy Bill in August.

Health Minister Dr. Perry Gomez said the law would place strict limitations on the practice to prevent human reproduction.

A scientific review committee and an ethics committee are to police the sector.

October 31, 2013

thenassauguardian

The Bahamas is one of three Caribbean nations that lead in improving the region’s business climate

World Bank: Bahamas Improving Region’s Business Climate

by Rogan Smith

The Bahamas is one of three Caribbean countries in the lead when it comes to improving the region’s business climate, according to a new World Bank report.

The ‘Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises’ report was released Tuesday.

The Washington-based financial institution said this country, along with Jamaica and Trinidad and Tobago took steps to improve their business regulatory environment over the past year.

The report said The Bahamas made transferring property easier by reducing its stamp duty.

It also noted that The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, allowing voluntary liquidations and outlining clawback provisions for suspect transactions.

However, Jamaica led the way in the Caribbean by adopting new legislation for private credit bureaus, reducing the corporate income tax rate and streamlining procedures for starting a new business.

The report acknowledged Trinidad & Tobago’s efforts to lower the cost of connecting to the power supply.

The Bahama Journal

Caribbean Blog International

Gaming and financial regulations in The Bahamas

Bahamas ‘10 to 15 years’ ahead of curve on casino gaming

Director of UK institute focused on financial crime suggests need to address illegal gaming




By ALISON LOWE
Guardian Business Editor
alison@nasguard.com

The Bahamas is “10 to 15 years ahead of the curve” in the region with respect to legal gaming and associated regulation, but will likely have to very soon consider the implications of illegal gaming in the “web shop” industry if it is to avoid the “very painful downsides” of unregulated gambling, an international gaming and financial crime regulation specialist has warned.

 

Kleo Pappas, director of the International Governance and Risk Institute, told Guardian Business that he expects that illegal gaming is a topic that will arise during the forthcoming “Bahamas Gaming Forum: Fostering Growth, Transparency and Social Responsibility”, which the institute is hosting at Atlantis resort next week.

 

A UK-based entity that specializes in organizing and running financial crime prevention training programs, consultations and gaming regulation seminars, the International Governance and Risk Institute’s forum will bring together regional officials and firms navigating the challenges of managing gaming regulation in an environment of evolving technology, while remaining competitive.

 

Among those expected to attend from throughout the region, the U.S., Canada and Australia are casino managers, money laundering reporting officers, gaming regulators, law enforcement officers, compliance officers and international firms seeking access to emerging markets for gaming.

 

The event will be opened by Minister of Tourism Obie Wilchcombe and Prime Minister Perry Christie, and will see speakers focus on issues such as the growth and regulation of Caribbean gaming, anti-money laundering, essentials of gaming law, customer due diligence for online gaming and “cheat intelligence”.

 

Pappas said that recently-tabled legislation in The Bahamas which would allow mobile gaming on resort campuses throughout The Bahamas certainly raises interesting new questions for regulators who might seek to ensure this type of activity is being managed in a responsible and legal manner.

 

“Without a doubt, because having mobile gaming is gambling remotely [it raises new challenges]. You’re not going to a resort, you’re not snapped on a camera or anything like that. And socially - and I don’t really know because I haven’t been immersed in this country’s regulations - I am not sure how they will effectively limit that to on-campus.

 

“If you are on the side of the fence that doesn’t want gaming to become prevalent, there is the question of how those on the other side of the fence may view (mobile gaming) as the thin end of the wedge.”

 

Pappas said that The Bahamas is a model for other jurisdictions that may be interested in pursuing gaming to a greater degree, but indicated that the jurisdiction may eventually have some catching up to do with respect to dealing with the “numbers” sector.

 

“I think for The Bahamas what you have going for you though is that you are in a place where a lot of jurisdictions are going to be in 10 to 15 years from now.

 

“You are further along this evolution of gaming and financial regulations; your financial intelligence unit is very well run and organized. There are fail-safe measures in place for the financial services industry which wouldn’t take a lot of effort to modify them for the gaming sector.

 

“But if this is something that is happening illegally, I don’t think it’s going to be a very long time before they have to look at it. And by all means look at something like they have in the UK, put the emphasis very much on the gaming operators to put money into a pot to make sure there is a social awareness, that people realize the very painful downside to gaming that is done to excess,” said Pappas.

 

He compared unregulated gaming to Prohibition in the U.S., and told Guardian Business that he expects the topic to come up at the forthcoming forum.

 

“We’re going to have one or two debates I’m sure and panel sessions, and if it doesn’t get raised I’m going to raise it,. The parallels are very similar to the Voldstead Act - the prohibition of alcohol for that famous 10-12 year period in the U.S. where they decided they would have the ‘sober society’ and concentrate on what was important.

 

“The church was very much behind that, and what was the result? People drank astonishing amounts of booze, huge amounts of money was spent on it, and you had this gangster class of people that rose up. The elicit gaming that happens here, you are not alone in that, Trinidad and Tobago has the same issue.

“They don’t have a regulator because they don’t want to be seen to regulate something that is illegal, but they realize that the writing is on the wall, the end is nigh and they are at the point where they either take the plunge and legalize it or stamp it out somehow.”

The Bahamas Gaming Forum will take place from October 28 - 30 at Atlantis resort.

October 25, 2013

thenassauguardian

CaribbeanBlog International

The Bahamas Government’s focus on Value-Added Tax’s (VAT) ‘medium-term benefits’ is “a farce” ...says Rick Lowe of the Nassau Institute

Gov'ts Medium Term Vat Focus 'A Farce'

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

 

The Government’s focus on Value-Added Tax’s (VAT) ‘medium-term benefits’ was yesterday described as “a farce”, with the private sector and consumers more concerned with what happens on July 1, 2014.

Rick Lowe, an executive with the Nassau Institute think-tank, which produced a study showing VAT would have a highly negative impact on the Bahamian economy, said businesses were more concerned about the immediate, near-term effects of tax reform.

He was responding to John Rolle, the Ministry of Finance’s financial secretary, who told Tribune Business yesterday that the initial results from an Inter-American Development Bank (IDB) study showed that VAT would positively impact jobs and growth, and reduce inflation, in the ‘medium term’.

While Mr Rolle did not define that latter term, Mr Lowe said that in economic terms it usually referred to a duration of five-10 years.

He added that this ‘longer term’ outlook also failed to account for the likely immediate inflationary impact of VAT, especially on services, which accounts for 70 per cent of the Bahamian economy.

“I think it’s a bit of a farce to say what’s going to happen in the medium term,” Mr Lowe said of the Financial Secretary’s comments.

“We’re concerned with what’s going to happen the day it’s implemented, the near and immediate term.  What about all these countries where it’s caused increased unemployment, the government to lose revenue, all sorts of economic dislocation?

“Why are you talking about what’s going to happen in the medium term, five-10 years away?”

Mr Rolle said the IDB study has shown that VAT will have a “positive” impact on the Bahamian economy’s growth and employment prospects in the medium-term.

He added that despite the IDB study being incomplete, the ‘preliminary results’ showed the Government’s tax reform centrepiece would also result in reduced inflationary pressures.

“While the IDB study is ongoing, we have seen the preliminary results, which attest to the projected positive economic impact of the fiscal reforms (growth and employment over the medium term), and to the reduced inflationary pressures to which the budgetary consolidation would contribute,” Mr Rolle told Tribune Business.

“Additional historical data is being added to the economic model, which will allow the researchers to fine-tune their results.  Afterwards the results of the study will be published.”

Yet Mr Lowe suggested the fact Mr Rolle did not comment on VAT’s immediate impact was telling.

“I keep saying to people: ‘Watch the language, watch what they don’t say’.  That’s critical.  They’re masters at it.  It’s quite frustrating, honestly,” he told Tribune Business.

“It’s very unfair to the Bahamian citizen, the Bahamian taxpayer.  They don’t talk about the immediate cost of living increases that are going to happen.”

The IDB used its October quarterly bulletin on the Caribbean to confirm it is working with the Government on implementing VAT in the Bahamas.  It said its study on the new tax’s impact on the economy and wider society was only “underway”.

“The IDB has been working with the Government of the Bahamas to assist with Value-Added Tax (VAT) implementation,” the Bank’s October missive said.

“Using an econometric model, the IDB has provided specific input on the effects of the changes in revenue of the proposed VAT rates and the base on which the VAT will be charged.

“An economic impact study that assesses the effect on prices, economic growth, poverty and income distribution is currently underway. Consultations on the creation of the Central Revenue Agency, which will administer the VAT and select the IT system, are currently underway.”

October 22, 2013

Tribune 242

 

...as we celebrate 40 years of Bahamian independence ...the time has now arrived for us to complete the process ...and to honor those among us who deserve to be recognized as Bahamian national heroes

Bahamian national heroes pt. 2

Consider This...

BY PHILIP C. GALANIS

“My own heroes are the dreamers, those men and women who tried to make the world a better place than when they found it, whether in small ways or great ones.   Some succeeded, some failed, most had mixed results... but it is the effort that's heroic, as I see it.  Win or lose, I admire those who fight the good fight.”

– George R.R. Martin

Two weeks ago, on October 7, in part one of this series on Bahamian national heroes, we asked whether it was time for us to bring into force a national honors system for Bahamian heroes.  Two days later, on October 9, the prime minister delivered a communication to Parliament announcing that the government would bring the Majority Rule (Public Holiday) Act 2013 into force, ushering in the long-awaited recognition of the day on which majority rule was achieved in The Bahamas, January 10, 1967, as a public holiday.   Accordingly, the first public holiday to commemorate that singularly important event will be celebrated next year on January 10, 2014.

In the same communication, the prime minister announced that the National Heroes Act 2007 would also come into force on Friday, October 11, 2013, replacing the day that was previously celebrated initially as Columbus Day and later as Discovery Day as National Heroes Day.   And so said, so done!

This week, we would like to Consider This… is it time for us to complete the process of bringing into force a national honors system for Bahamian heroes?

A step in the right direction

Without a doubt the official recognition of these public holidays is a gargantuan step in the right direction.   And for this, Perry Christie and his administration should be applauded.   These two important holidays on the Bahamian calendar will forever concretize Christie’s legacy in the annals of Bahamian history.   However, these are first steps and much more is required.

In his communication, the prime minister stated that “National Heroes Day” will be a national holiday to “be observed on the second Monday in the month of October of each year”.  That is not technically correct.   The National Heroes Act specifically states in section 11 that “the 12th day of October”, not the second Monday of October, “will be commemorated as The Bahamas National Heroes Day”.   It is a distinction with a difference, one that, we are certain, will be clarified in the fullness of time.

The advisory committee

The National Heroes Act provides for an advisory committee that will make recommendations as to persons who should be recognized as national heroes.   According to the act, the advisory committee “shall consist of not less than seven members appointed by the prime minister” and be comprised of two senators and two members of the House of Assembly.  In his communication to the House of Assembly, the prime minister correctly observed that, “It would certainly be my wish, Mr. Speaker, that there be one nominee from the government and one nominee from the opposition in each of the House of Assembly and the Senate.  This will ensure optimal balance and parity.   We really do need to take partisanship and political prejudice out of the selection of our national heroes.  To do otherwise would be to debase the whole process and to detract from the sense of national unity and patriotism that should always be exclusively in view when we approach a matter such as this.”

However, if the advisory committee is constituted with the minimum number of persons provided by the act, which is seven, then the advisory committee will be dominated by the four politicians and the majority vote will be able to be cast by those politicians.   Given the profoundly partisan polarization and seemingly intractable political tribalism that has developed in the country over the past decade, this could defeat the objective of removing “partisanship and political prejudice out of the selection” process.  For far too long, an elongated and dark shadow of politics has been cast over most things in our society.  Because, as Christie put it, “this group, this ‘Order of National Heroes’, will be exceedingly small – the rarest of the rare, the greatest of the great”, the selection process must be scrupulously meticulous and not obscured by that shadow – or any other – so that Bahamians, present and future, may be confident in the impartial choices of these exceptional individuals who will carry this extraordinary title and the term “national hero”.

We therefore believe and recommend that, in order to accomplish this objective, the prime minister, in exercising his powers of appointment under the act, should appoint an advisory committee of at least nine persons, and ensure that the majority of the committee will be comprised of non-politicians.  We can only assume and hope that the non-politicos on the committee will be broadly drawn from civil society in such a manner that would firmly instill the public confidence that must be maintained in the selection process.   In addition, we suggest that the chairman of the committee should not be a politician.

The National Honours Act 2007

The National Honours Act 2007 which has not yet been brought into force, provides for the establishment of national honors, including:

• The Order of The Bahamas

• The Order of Excellence

• The Order of Distinction

• The Order of Merit

• Other honors constituted by the governor general after consultation of the advisory committee established under section 13 of the Bahamas National Heroes Act.

It will be critically important to clearly define the criteria that must be satisfied for each of the aforementioned honors and once completed, to begin identifying those deserving souls and to commence conferring such local honors upon them.   As we develop our own criteria, we can draw on the experiences of some of our neighbors: Jamaica’s National Honours and Awards Act, established in 1969, and the National Heroes Act, passed by the Parliament of Barbados in 1998, just to name two.

Conclusion

As we noted in part one of this series and as we celebrate 40 years of Bahamian independence, the time has now arrived for us to complete the process and to honor those among us who deserve to be recognized as Bahamian national heroes.   We should do so in the grand and respectful manner that Bahamian honorees rightly deserve, finally joining our Caribbean counterparts in celebrating our own, in our own way, and showing the world how much we value ourselves and the contributions of our countrymen who have helped to build this 21st century nation.

• Philip C. Galanis is the managing partner of HLB Galanis & Co., Chartered Accountants, Forensic & Litigation Support Services. He served 15 years in Parliament. Please send your comments to pgalanis@gmail.com.

October 21, 2013

Bahamian National Heroes pt. 1

thenassauguardian

What's the “current impact” of slavery on The Bahamas and Bahamians? ...CARICOM, the Caribbean Community organisation ...is suing Britain, France and the Netherlands ...for what could be millions of dollars in reparations for slavery

Lawyers Want Bahamians To Help Determine Slavery Impact

Tribune 242:




BAHAMIANS could help determine the “current impact” of slavery on the nation as part of the effort to get slavery reparations from European countries.

That’s the proposal from the British lawyers who are advising CARICOM, the Caribbean Community organisation, which is suing Britain, France and the Netherlands for what could be millions of dollars in reparations for slavery.

 

CARICOM says it hopes to reach a settlement with the European countries and will only take legal action if talks collapse.

 

It set up a reparations commission to work out who should be paid and how much, led by Barbados historian Sir Hilary Beckles.

 

Martyn Day, the British lawyer who is advising CARICOM, told The Tribune: “Our proposal is that we work with a group of academics under Professor Beckles and people from each country to determine the current impact of slavery on each nation. We are awaiting the CARICOM response to that proposal.

 

“These are still early days and we are working out a protocol with the CARICOM group.”

 

Leigh Day, the UK-based firm set up by Mr Day 26 years ago, represented 5,250 Mau Mau in the claims against the British Government regarding the torture they suffered at the hands of the British colonial regime in the 1950s in Kenya. They negotiated a total deal of around £20 million ($32 million) for them.

 

Dr Ralph Gonsalves, Prime Minister of St Vincent and the Grenadines, contacted the firm this spring to ask if they could assist in bringing a claim against the British and other governments in relation to slavery.

 

Mr Day said the request was “much in the light of the Mau Mau settlement.”

 

He said: “We advised PM Gonsalves as to the best legal route to take with the claims and then in July I made a presentation to the CARICOM leaders meeting in Trinidad of the legal route. This was a part of the resolution put forward by PM Gonsalves. The resolution was unanimously carried.

 

“Then last month I made a presentation to the meeting of the National Reparations Steering Committees re the legal case when it met in St Vincent.”

 

Bahamas Foreign Affairs Minister Fred Mitchell told The Tribune last week that although no representative from this country was present when the decision was taken, the Bahamas was still bound by that decision. He said: “We haven’t defined a position taken at the last CARICOM meeting. We weren’t represented there. However, whatever was the decision that came out of the last meeting, that would represent our position.”

 

Mr Day said: “The first step will be to put letters together on behalf of each nation in CARICOM setting out to the British/French/Dutch governments the case. That is all about the issue of the impact of slavery on each nation today. It is too early to state quite what the figure being claimed will be.

 

“The claim will be on behalf of governments who would look to use any sums obtained for the benefit of their peoples. I can well imagine that if the claims are successful and a deal is agreed with the western governments that they would look to ensure the money paid out was used on the projects discussed.”

 

October 18, 2013

 

Tribune242

 

Caribbean Blog International

 

...a push to The Bahamas government for the enactment of a Food Security Tariff ...to ensure that what is produced locally is available to the Bahamian public

Eneas Calls For Food Security Tariff

by Korvell Pyfrom
Jones Bahamas


Agricultural expert Godfrey Eneas yesterday made a push to the government to enact a “Food Security Tariff,” which he said will give better market access to local producers.

Mr. Eneas, who also serves as The Bahamas’ Ambassador to the Food and Agriculture Organisation (FAO), noted that The Bahamas’ food system has to overcome significant barriers.

“I will shortly propose to the minister that we introduce a Food Security Tariff to ensure that what we produce is available to the Bahamian public,” he said. “Food and nutrition security in The Bahamas will not be a reality without the cooperation of local food importers who, at the moment, control the food market.”

Mr. Eneas was among the speakers at a ceremony commemorating World Food Day at Arawak Cay.
As The Bahamas’ representative at the FAO he explained that world hunger is among one of the greatest challenges facing mankind.

“Many of us in this country take food for granted,” Mr. Eneas said.

“If you need some rice, meat, eggs, vegetables we go to the food store. However, there are scores of countries where food is not readably available because of poverty – food is unaffordable, because food production has been adversely affected by factors like climate change, the inability to purchase or obtain inputs like seeds, fertilizer, pesticides or the harvest has been destroyed by pest and diseases.

“One out of every eight people globally suffers from hunger. Feeding mankind has become a very complex undertaking.”

He noted the significance of this year’s World Food Day theme, “Sustainable Food Systems for Food and Nutrition Security” and reminded that The Bahamas imports $1 billion dollars’ worth of food.

“We depend on the global food system because our food system is woefully inadequate,” Mr. Eneas said. “With reference to our present food system and its ability to provide food and nutrition security, there are serious shortcomings which, I am happy, to say are being addressed.”

October 17, 2013

The Bahama Journal

Caribbean Blog International

Bahamian History and Bahamian National Heroes... Happy National Heroes Day Bahamas!

Our History and National Heroes

By ARINTHIA S. KOMOLAFE

Monday, October 14, 2013 is a day for the history books of our nation as we celebrated the first National Heroes Day in The Bahamas.

This historic feat comes after years of lobbying and advocacy by several individuals and certain sectors of the Bahamian society for a public holiday in honor of our national heroes.  It was therefore heart-warming when on Thursday, October 10, 2013, Governor General Sir Arthur Foulkes gave assent to the passage of two bills which paved the way for the National Heroes Day celebration and the observance of January 10 each year as a public holiday in honor of Majority Rule Day.

Discovery and a nation in transition

History records that in 1492, Christopher Columbus set sail upon the seas from Spain to discover what became known as the New World.  The Bahamas will always have its place in world history as the record shows that Columbus’ first stop on his voyage was Guanahani Cay, which he called San Salvador meaning “the land of Jesus Christ the Savior”.  The blessings upon The Bahamas are apparent in that in spite of our size, our country holds a unique place in history based on the voyage of Columbus.

All across the Americas, nations have paid homage to Christopher Columbus either by recognition of a public holiday or through monuments.  However, many nations have moved to change the name of the holiday for diverse reasons.  Some argue that Columbus was not the first European to sail the Americas, nor could he have discovered that which already existed.  In other words, The Bahamas which is recorded as his first landfall during his first of four voyages, was already inhabited by Arawaks, Tainos and Lucayans.  To reinforce the case against perpetuating the celebration of Discovery Day, Columbus is accused of genocide and eradicating many of the natives during his voyages.  The transition of Discovery Day into National Heroes Day, in our case, also marks another step in the life of our country as we cut ties with our colonial past, giving honor to the men and women of yesterday who fought to create the modern Bahamas as we now know it today.

A landmark event and movement

The Bahamas is one of the last countries in the region to make this long overdue shift as many of our Caribbean counterparts have over the years opted for a National Heroes Day.  It is fitting that the Government of The Bahamas has made this landmark step to recognize the heroes of our nation to ensure that the accomplishments and memories of such unique individuals are enshrined in the conscience of our people from generation to generation.

Additionally, the commemoration of majority rule will forever tell the stories of the struggles of our foremothers and forefathers who fought for the voice of the majority to be heard and the opportunity for equality to be achieved within our commonwealth.  It is our hope that these significant steps taken by the government will also ensure that a full account of history is taught and preserved for future generations.

Our history and our identity

For many years, those of us who were educated in The Bahamas during the sixties, seventies, eighties, nineties, and even into the new millennium, were taught American and European history for the most part.  Regrettably, we still do not have a formal and comprehensive Bahamian history curriculum within our nation’s school system; this is a matter in need of urgent attention for our history is a major part of who we are as a people.

On a personal note, this writer recalls being introduced to Bahamian history from a political perspective during a government and politics elective course at The College of The Bahamas back in the late nineties.  This begs the question: What about the thousands of Bahamians who may not pursue tertiary education and never enter the halls of The College The Bahamas?  Their only hopes are the biographies and memoirs of past Bahamian leaders or the more popular informal education, which may sometimes be skewed, one-sided and/or inaccurate depending upon the mindset of the individual telling the story.

A dedication to Bahamian history

Spanish philosopher George Santayana stated in his “Reason in Common Sense” that “those who cannot remember the past are condemned to repeat it”.  For this reason, it is essential that the Bahamian people, specifically the younger generation, are aware of their history lest we repeat a part of our history to our detriment and the struggles of those before are rendered in vain.  The institution of Bahamian History Month will certainly shine the spotlight on past victories and defeats of those who came before us and fought the good fight to secure the liberties we now enjoy.  Moreover, it may encourage those persons with a story to tell to do so while recording their contributions and sacrifices made for the benefit of our nation.

The education of the populace is important to avoid a return to the dungeons of intolerance and inequality of The Bahamas of old.  It should not be unthinkable that The Bahamas can find itself in the position that it was in pre-majority rule or even pre-independence.  Colonization, albeit in a more subtle and economic form, is still a concern in today’s world – particularly for small island states like The Bahamas, with wealth and political power at the heart of this ill.

Commonality for the national interest

The camaraderie that existed between the individuals of diverse political affiliations, gender, race and creed who labored for the recognition of our national heroes must be allowed to spread throughout our archipelago.  We must always live up to our motto and progress “forward, upward, onward together”.  As we begin to identify and honor our national heroes, we must be ever mindful of their concepts of nationhood, their struggle for freedom, their contributions to our social transformation and their willingness to give of themselves for the benefit of our Bahamas.  These individuals may not have been and will not be perfect; however, their flaws should not disqualify them from national recognition or diminish their status based upon the work they have done to contribute to the quality of life for all Bahamians and their role in the fulfilment of our destiny as a nation.

The spirit of our true national heroes should transcend political divides and address the polarization of our country which has yielded no positive results.  The current state of the U.S., whose government has been shut down and is at risk of a default on its debts, is a chilling reminder of this fact; the reality that level heads should prevail and personal interest should not supersede the national interest lest the nation is destabilized.

As we continue to celebrate the 40th anniversary of our independence, we applaud the government for making this bold and historic move.  We applaud the National Heroes Committee and other proponents of this cause for their tireless efforts over the years to make this day a reality.  In the words of the Rev. Canon S. Sebastian Campbell, a nationalist and progressive who no doubt will have his place in our history, “We urge all our people on all our islands to celebrate our heroes and establish traditions for years to come.”

Happy National Heroes Day!

• Comments on this article can be directed to a.s.komolafe510@gmail.com.

October 15, 2013

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