...Value added tax (VAT) is an inappropriate tax for a tourism-based economy

Value added-tax ‘anti-tourism’

Central Bank of Barbados chief says VAT system ‘a mess’ there and urges government to replace it with sales tax

By ALISON LOWE
Guardian Business Editor
alison@nasguard.com

BARBADOS – Claiming he has seen “declining enthusiasm” for the tax over the years in his own country, the governor of the Central Bank of Barbados has called value-added tax (VAT) an “anti-tourism” tax which has hurt its local industry and which he is lobbying to see removed there.

In an exclusive interview with Guardian Business on VAT and its effects, Governor of the Central Bank of Barbados Dr. Delisle Worrell, who has held the post since 2009, said that VAT is “horribly complicated” to administer and called Barbados’s own VAT system “a mess”. Worrell said that in his view a “simple sales tax” would be a far preferable means of revenue generation for the Barbadian government.

Admitting that his position on the tax is considered “very radical” among his colleagues and does not necessarily represent that of the bank as an institution, Worrell said that he has been opposed to the tax in Barbados since its inception.

The government of Barbados introduced VAT at a rate of 15 percent in 2010; it was later increased to 17.5 percent in 2010 for what the government at the time said would be a period of 18 months and has remained at that level since.

The economist, who has recently concluded a study on VAT for the Central Bank, said: “I take a very radical stance on VAT. I think VAT is an inappropriate tax for a tourism-based economy. The rationale for VAT is that it is an export promoting tax, because if you are exporting physical goods (VAT is not charged on) those goods, but the producers are able to claim refunds/rebates on their inputs.

“They are ‘vattable’ goods but because their sales are external you’re not going to charge VAT on the exports, only on the domestic sales. So if they are a sugar producer they will pay VAT on local sales but anything they export they won’t pay any vat on, but they will claim a rebate on all of their inputs. So there’s a bias in the VAT in favor of export industries; that is if you are exporting physical things that are consumed outside, but not if you are exporting tourism, because the tourists come to you to consume.

“So VAT is an anti-tourism tax if you are a tourism producer because it makes your tourism more expensive than the people who don’t charge VAT, and that’s why all tourism countries who apply VAT have to apply it at a lower rate. A simple sales tax would be much better.”

Barbados applied a 7.5 percent rate of VAT to its tourism sector when it implemented VAT in 1997. This was later increased to 8.75 percent when the general rate rose to 17.5 percent, but as is proposed in The Bahamas, the lower rate was only applied to room-related transactions, and other tourism services such as restaurants on the hotel property, tours, activities, car and boat rentals, for example, remained subject to the full rate of VAT.

Worrell suggested that a sales tax, something a number of Bahamian business owners and operators, most prominently Rupert Roberts, President of Super Value, have proposed, “a more efficient way to raise the same level of revenue” for the government of Barbados, or The Bahamas.

Confirming the fears expressed by a number of Bahamians regarding the administration of VAT, Worrell said it “puts a tremendous burden on government administrations” and businesses.

“It’s a very complicated tax, especially if you are selling services - what are your inputs? If I am making a cell phone I know I need silicon, I know I need different materials and so on so I can inventory the materials I’ve brought in and say for each cell phone I need X amount of these materials, it’s clear. But if I am an engineer and I am supplying engineering services, what are my inputs? And so it becomes horribly complicated,” he told Guardian Business.

With reference to the refunding of excess VAT paid to the government, the Governor confirmed that the government has not managed to pay these sums back to businesses in a timely fashion, despite interest being owed by the government to the business if it takes more than six months to pay the refund after it is owed.

“They are in arrears on refunds and they are also a known quantity of refund claims that are outstanding, and there are cases where the companies have claimed the refund and the VAT office has not necessarily accepted those,” he added.

On the plus side, Worrell said that VAT has been successful at raising revenue for the government. In a recent study, titled “A Review of the VAT system in Barbados” Worrell and his three co-authors at the Central Bank said there was “some gain” in revenue yield relative to the tax rate with the establishment of VAT in Barbados, but the administrative costs of collecting the VAT were higher relative to the revenue received than for the taxes they replaced.

Finding that VAT has been “less elastic and less buoyant” in response to changes in income than its predecessor taxes, the authors said that this indicated the need for “greater compliance” with the tax in Barbados, noting that the VAT division of the government could benefit from employing additional staff.

Asked yesterday if the Central Bank of Barbados is therefore recommending that the government of Barbados do away with VAT as a source of revenue, Worrell said: “Not the Central Bank - me.” He added that the government is not officially considering removing VAT.

February 21, 2014

thenassauguardian

Value Added Tax (VAT) is viable in The Bahamas

“VAT is Viable,” says Leading Auditor, Calls VAT ‘Most Equitable, Transparent’

Kendrick Christie, President of the Association of Certified Fraud Examiners Bahamas Chapter asserted that “Value Added Tax (VAT) is viable in The Bahamas.”

“Business owners must be responsible with the information they purport as facts,” says Christie. “A lot of what I am hearing is at best anecdotal. The reality is the government is being prudent by aggressively tackling tax reform as the current tax system, led by customs duties experience high levels of leakage,” Mr. Christie explained. “VAT allows for enhanced checking ability for internal and external auditing and analysis that can be useful in business strategy.”

Mr. Christie’s comments come as the Bahamas debt is expected to reach just over $5 billion by June 30.

“The accounting profession has been conducting training for its members and the public for almost a year to ensure individuals are fully prepared for the transition to VAT,” Mr. Christie replied when asked about how prepared his industry is for VAT’s implementation.

“There will be opposition to any increase in taxes at any point in time,” Christie added.  “The truth is that to avoid downgrading of our fiscal and monetary position, the government must act. The government may feel that they are in a Catch 22, however, the decision is clear – a new tax system is needed and one of the most equitable and transparent is VAT.”

Mr. Christie complimented the government on its outreach to the different sectors of the business community. “It appears to be a multi-step educational process which started with the business community. I now note the consultation with consumers and I urge them (consumers) to prepare, ” he said , noting he expects the educational campaign to increase once the Value Added Tax Bill and Regulations are passed through Parliament.

VAT, since its introduction, has been the most successful fiscal tool worldwide for revenue generation.  No other taxation system has been adopted more rapidly than VAT and it has become the mainstay of national finances for developed and developing countries.

Bahamas.gov.bs

Value Added Tax (VAT) and the Bahamian economy

Imf Not Forcing Vat On Bahamas

Tribune242:



The Bahamas’ decision to implement Value-Added Tax (VAT) did not result from the International Monetary Fund (IMF) holding a gun to the Government’s head, a key Ministry of Finance consultant says.

 

Ishmael Lightbourne, former senior partner at PricewaterhouseCoopers (PwC) Bahmas, told dozens gathered at Evangelistic Temple that VAT is just one of many remedies to get the Bahamian economy back on track, given that the national debt has skyrocketed over the past 20 years.

 

The former World Bank director said the Bahamas’ fiscal deficit is five times greater than what it was in 1993. What started out as borrowing to finance capital spending on infrastructure – roads, hospitals and utility plants – has evolved into borrowing for everything from operating public corporations to paying civil service salaries.

 

“If the IMF were in the position to force us to do anything, they would have done so 20 years ago,” Mr Lightbourne said. “There is a great deal of misunderstanding about that. The IMF has made no threats, and does not - and cannot - seek to impose their will on a sovereign government.”

 

He said VAT is the Government’s effort to balance out the unsustainable inequity between what the country brings in as revenue and what it spends.

 

“Governments,” Mr Lightbourne said, “have for the past two decades tried to fill the vacuum left by policies that once allowed foreign investors and developers to build without putting in their own capital investment in roads, utilities, parks and more.

 

“Succeeding governments were left to foot the bill, but expenses were greater than revenue under an increasingly outdated tax system of heavy reliance on Customs duties.”

 

“For the past 20 years, in the absence of major private sector investment, this is what we have done,” he added. “As a result, our debt has more than doubled and growth has been stagnant. So today we can no longer be inactive.”

 

The Government’s series of consultations on VAT continue this month at Government High School on February 19 at 11am; AF Adderley High School on February 19 at 9:30 am; SC McPherson High School on February 20 at 10am; the Bahamas Human Resources Association on February 20 at 11:40 am; Alexiou Knowles & Co. on February 21 at 8:30 am; and BEC on February 21 at 11:30 am.

 

For more information on the VAT implementation, call the Ministry of Finance VAT hotline between 9am and 5pm, Monday-Friday, at 225-7280. Persons can also visit the official Facebook

page at www.facebook.com/vatbah242.

 

February 18, 2014

 

Tribune 242

We do not support value added tax (VAT)

Some Family Is. residents “clueless” about VAT

By ROYSTON JONES JR.
Guardian Staff Reporter
royston@nasguard.com

With fewer than five months before the implementation of value-added tax (VAT), several residents on two Family Islands said they have been left in the dark about the planned tax.

Iris Charlton, an English teacher at Abraham's Bay High School and a member of the Coalition for a Better Mayaguana, said many residents are “really afraid” that VAT will significantly reduce their standard of living.

Noting the high cost of living, and “exorbitant” charges on mail boat services, which bring food and other supplies to the island, Charlton said, “As a result, the things that customers have to buy in the local convenient stores are really, really high.

“It is tough. We do not support VAT.

“We do not see how it is going to work for us because we are struggling already.”

The government has said it will introduce VAT at a rate of 15 percent in most cases and 10 percent for the hotel sector.

Huel Williamson, a retiree, said the majority of residents are struggling to get by and many of them are unemployed.

Mayaguana has fewer than 300 residents, according to the Department of Statistics.

It is unclear what the unemployment rate is on the island.

“The economic situation here in Mayaguana is stagnant, very stagnant,” Williamson said.

“The I-Group wants to employ approximately 80 people, but right now they have a very limited number of people [on the project].”

According to I-Group officials, around 30 Bahamians are employed on the airport redevelopment project.

Asked whether residents have been adequately informed about VAT, Charlton said, “The way they had the forums for the (gambling) referendum, and the constitutional forums, something like that is needed...because a lot of people are clueless.”

Williamson said residents have been expecting government officials to visit the island to explain VAT, but that has not happened as yet.

Johnie-Mae Colebrooke, a mother of two and business owner in Andros, also expressed concern about VAT.  She said many residents are challenged to provide for their families.

“I feel very bad because I am a business woman, me and my husband George Colebrooke,” she said.

“We are praying for something to move in Andros where everyone can work because we have a lot of bills and there are no jobs.”

Minister of State for Finance Michael Halkitis said the government will cover all Family Islands before July 1, having already visited Grand Bahama, Abaco and Andros.

Mount Moriah MP Arnold Forbes said in a recent interview that on average nine out of every 10 people in his New Providence constituency do not understand VAT.

He said the government must get its education campaign to the “grassroots people”, something government officials have said they are in the process of doing.

“We will have the business owners who will have their say, but it is really the regular guy on the street, who is in the majority, that I believe we need to educate them on this in a major way,” Forbes said.

On Wednesday, Prime Minister Perry Christie said he can still be persuaded by the private sector to introduce an alternative tax model if it proves to be viable.

Christie also said the Ministry of Finance is in an “advanced” stage of preparation for VAT and is moving ahead with its implementation.

February 17, 2014

thenassauguardian

Can anyone imagine two Romanian women landing on Columbus’ island of San Salvador ...scooping up 13 frightened iguanas, stuffing them in socks, then into a suitcase ...and getting as far as London on their way to deliver them to an unknown accomplice in Dusseldorf, Germany ...without some kind of local assistance?

Investigating Theft Of Iguanas

Tribune242:

AS Deputy Prime Minister “Brave” Davis said in a press statement yesterday, it is important that the mysterious appearance of 13 Bahamian iguanas — one dead— discovered in luggage at Heathrow Airport, London, should be thoroughly investigated.

Can anyone imagine two Romanian women landing on Columbus’ island of San Salvador, scooping up 13 frightened iguanas, stuffing them in socks, then into a suitcase and getting as far as London on their way to deliver them to an unknown accomplice in Dusseldorf, Germany, without some kind of local assistance? No, we can’t, nor can Mr Davis.

“This story is troubling in many ways,” said Mr Davis. “These animals are an endangered species, living in isolation from regular human contact. They run away from intruders. To secure 13 animals and to remove them from San Salvador in secrecy would seem to be a daunting task.”

Quite rightly, Mr Davis was concerned that these foreign ladies “probably had assistance from someone or others resident on San Salvador as well as in Nassau before boarding the flight to London”.

It is obvious that there is a local racket going on — if it’s not drugs, it’s our endangered species.

The question is what else and how many more of our rare species are being smuggled out? Were these the first iguanas to leave our shores, or were there others that unfortunately missed detection?

We are certain that all concerned Bahamians, in the words of Mr Davis, are “anxious that this criminal act is fully investigated and that all parties involved in this despicable attack on our natural heritage are dealt with by the law in all relevant jurisdictions. We must all play our part in protecting our natural heritage.”

Not only should any Bahamian who aided and abetted in this despicable act, all along the transit chain, be held accountable, but so should the two Romanian couriers, and whoever was to receive them at their final destination.

“I have been in contact with our security organisations and other agencies of the Government, to ensure that The Bahamas is intimately involved in finding a resolution to this theft and, hopefully, to arrange the safe return of the still living iguanas to their habitat in San Salvador,” said Mr Davis.

He called on “citizens everywhere to be mindful that there will always be those who try to use our islands for trafficking of drugs, people and our natural treasures to other jurisdictions. We must all be vigilant and play our individual parts to the fullest to protect our Bahamas from criminals of all sorts.”

“With only a few of these creatures native to the Bahamas in existence, the San Salvador rock iguana is considered extremely rare and is near extinction. All rock iguanas in the Bahamas are protected by the Wild Animals Protection Act,” The Tribune reported in “The Big T” over the weekend.

With all the publicity that this ugly escapade has attracted in Europe these are certainly 13 of the world’s best known iguanas. They will probably be delighted to return to the warmth of their own sandy shores.

However, Bahamians should take the protection of their heritage seriously. We recall that as a child — many, many moons ago — the delight we took in gathering the most beautiful shells from our beaches.

These precious pieces were in such abundant supply that no one ever thought that they could disappear — we believed that shells were washed ashore with every incoming tide. And then, over time they were no longer there. The only time that we see anything resembling these shells is in special shops in other lands.

Every summer we watched as American tourists walked our beaches, collecting the shells. We remember one gentleman in particular.

Every summer barefooted with rolled up trousers on Montagu Beach, he collected the shells for sale in the US. We watched him grow old on this beach and eventually take Bible in hand and establish a small church here.

He was not the only one. The desecration was happening before our very eyes, but no one realised what it meant for future generations until it was too late.

The only one who seemed to notice enough to take it seriously and warn Bahamians through these columns that they should protect their possessions was the second editor of The Tribune. He predicted that soon there would be a generation of Bahamians who would never understand the treasures they had lost — thanks to an earlier generation that did not protect what nature had bestowed upon them.

The busy pen was that of the late Sir Etienne Dupuch —nicknamed by many as the “Voice of Doom” – who daily through these columns told Bahamians truths that they did not want to hear. It is now up to this generation to become aware and protect what is left of our heritage for future generations.

February 12, 2014

Tribune 242

Serious concerns over endangered iguana smuggling

DPM expresses concerns over iguana smuggling

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

Deputy Prime Minister Philip Brave Davis yesterday expressed concern that 13 rock iguanas were stolen from San Salvador and smuggled into the United Kingdom.

“I am anxious, as are all concerned citizens, that this criminal act is fully investigated and that all parties involved in this despicable attack on our natural heritage are dealt with by the law in all relevant jurisdictions,” said Davis, the Member of Parliament for Cat Island, Rum Cay and San Salvador.

“We must all play our part in protecting our natural heritage.”

According to the BBC News, a customs team at London’s Heathrow Airport seized 13 iguanas on February 4.

The report said the iguanas, which were stuffed into socks, were found in a suitcase after officers stopped two Romanian women who had arrived from The Bahamas.

Twelve of the endangered lizards survived the voyage, according to the report.

Davis expressed concern that the women may have had assistance from residents on San Salvador as well as New Providence before boarding the flight to London.

“This story is troubling in many ways,” said Davis in a statement.

“These animals are an endangered species, living in isolation from regular human contact. They run away from intruders. To secure 13 animals and to remove them from San Salvador in secrecy would seem to be a daunting task.

“Further, the atrocious act was compounded by taking endangered animals out of the country into a foreign country by two women, with the explanation, apparently, being offered by them to British officials that they were in the process of delivering them to a third party in Germany.”

Davis said he has been in contact with Bahamian security organizations to ensure that The Bahamas is “intimately involved in finding a resolution to this theft and, hopefully, to arrange the safe return of the still living iguanas to their habitat in San Salvador”.

February 11, 2014

thenassauguardian

Bahamas Endangered Iguanas Intercepted in London

Endangered Iguanas Intercepted in London

The Bahamas High Commission London:




Endangered Bahamian Iguanas in London

The High Commission can confirm that thirteen endangered iguanas were identified and seized from two arriving passengers from The Bahamas at London's Heathrow Airport on Monday 3 February 2014. Two Romanian women, aged 24 and 26, were arrested on suspicion of importation offences and are being held without bail.

On instruction of the Government and in order to assess the animal's welfare and potential for repatriation, the High Commission dispatched an Officer to Heathrow's Animal Reception Centre to meet with Customs Officers where the twelve surviving iguanas are being cared for by Officials from the UK Border Force and City of London.

The High Commission can confirm that the animals were inspected and micro chipped by a specialist veterinarian on Thursday afternoon and the initial results are positive. The High Commission will continue to monitor the welfare of the iguanas while awaiting official test results, before a time frame can be set for their potential return to The Bahamas. A number of partners have offered their assistance in repatriating these animals and the High Commission wishes to express its gratitude to these partners.

The High Commission wishes to further express its gratitude for the assistance received by UK Officials and will continue to provide updates to the public when available.

Photo Caption: The twelve surviving iguanas which were intercepted on Monday are being cared for at Heathrow's Animal Reception Centre by Officials from the UK Border Force and City of London.

Photo Credit: BHC London

The lingering legacy of the transatlantic slave trade and chattel slavery in Caribbean societies

 World Structure May Not Bring Reparations Justice

By RUPERT MISSICK Jr:

THE Caribbean’s claim for reparations over “the lingering legacy of the Atlantic slave trade” is so fundamental to the current world structure that there may be no real, just way to respond, social anthropologist and College of the Bahamas professor Dr Nicolette Bethel told The Tribune.

CARICOM maintains that Caribbean societies have been built upon transatlantic slave trading and chattel slavery. It encouraged the slave-owning nations of Europe – principally Britain, France, Spain, Portugal, the Netherlands, Norway, Sweden and Denmark – to engage Caribbean governments in reparatory dialogue to address the “living legacies of these crimes”.

This dialogue took place on a smaller level recently in one of Dr Bethel’s classes at COB. She was joined by Dr Gilbert Morris who discussed with the students, via Skype, among other things, the legal foundations of a reparations claim.

Dr Bethel said she invited Dr Morris to lecture her class because she and Dr Morris have different positions on the question of reparations.

“The students need to know that scholars don’t always agree and need to learn how to think for themselves,” she said.

One of the issues surrounding the debate is the question of whether it is possible or even realistic to believe that reparations could take the form of dollars and cents.

Dr Bethel believes the debate should involve both the tangible and intangible.

“For me, the main point is the intangible, immaterial, and fundamental issue – that fundamental issue that when crimes are done to human beings and the world takes note, reparations are paid.

“The fact that people of African and indigenous descent have not been treated the same way suggests that the same lie that was invented to justify the slave trade still holds: that we are somehow less than human, and don’t rate the same respect.

“But the monetary side is also fundamental. The modern capitalist world was built on the forced labour of the people of the ‘new world’ and that debt has yet to be paid.

“Rather than Europe and North America paying back the Caribbean, Caribbean countries’ debts are being multiplied under the current world economic system, which, despite all mouthings to the contrary, is in no way ‘free’, unless the ‘free-ness’ is still free, forced, unwaged, underpaid labour,” Dr Bethel said.

Dr Bethel said that Bahamians have a difficult time addressing the issue of slavery because they were mistaught their history.

“We have deep shame about that history and we have not faced it or discussed it. I think this is by design. We imagine that it might be dangerous to our social relations to do so. Our social relations, whether we talk about the enslavement and dehumanisation of our past or not, are endangered. Perhaps one way of fixing that is to re-humanise us all, and one way of doing that is sitting down and reasoning together,” she said.

Slavery, Dr Bethel said, has created a society in which brutality is still the most accepted way of functioning.

“If we are not brutalising one another in every way, little and big, physical and psychic, we wish to brutalise those people on whom we place the label of ‘brute’ – our poor, our disempowered, the criminals.

“The institution of slavery dehumanised everyone, no matter what their origin. The process of beating down the enslaved dehumanised the enslavers. We have only to look at how we have designed our city and our public institutions to understand that we don’t really believe in our full humanity, our people-ness yet,” Dr Bethel said.

While there are many who feel something should happen in terms of reparations, it is doubtful that anything will.

One recent reparation claim levied against Lloyds of London in 2004 by a coalition of Rastafarian groups argued that European countries formerly involved in the slave trade, especially Britain, should pay 72.5 billion pounds to resettle 500,000 Jamaican Rastafarians in Africa.

The claim was rejected by the British government, which said it could not be held accountable for wrongs in past centuries.

So, in a perfect world, how should the Caribbean’s claim for reparations be answered?

Dr Bethel says she doesn’t know but feels that the Caribbean’s claim is so fundamental to the current world structure that there is no real, just way to respond.

“...So I cannot imagine a perfect world. However, let us look at what the Caribbean, what the new world lacks: we lack a real, fundamental connection to and agreement that our humanity is worth celebrating.

“What we lack is the luxury of spending money on things we deem ‘unnecessary’ but which are critical for the development of democratic and civil society, and that is what we need now.

“A fund for the creation of that kind of infrastructure? I don’t know. A return of all that we have lost – all our ancestral knowledge, our ancestral civilities? Can they be returned? Can they be rebuilt? Can we fund the healing that is necessary?

“Even if it is not possible, the gesture, the foundation, the funding must be provided somehow, somewhere, now,” she said.

February 04, 2014

Tribune 242

What's the precise meaning of the death penalty test imposed by the London-based Privy Council?

Call To End Confusion Over Death Penalty

Tribune242:



ONE of the country’s top judges has called for an end to the confusion surrounding the imposition of the death penalty.

 

Amid escalating crime and growing calls for capital punishment, Court of Appeal President Justice Anita Allen said the precise meaning of the death penalty test imposed by the London-based Privy Council must be made clear.

 

“We’ve considered these decisions, listened to and appreciate the concerns of the public and what the Constitutional Commission has recommended. I suggest that the time has come to bring clarity to the dispensation of justice in these cases,” Justice Allen said.

 

Speaking to politicians and members of the judiciary yesterday during the annual special sitting of the Court of Appeal, she noted that a 2006 Privy Council decision outlawed the mandatory death sentence for murderers then on the books, and made capital punishment discretionary.

 

But, Justice Allen said, the high court’s definition of a capital case as the “worst of the worst or the rarest of the rare” has caused “consternation in the ranks of legal scholars and the general public at large.”

 

“The test,” she said, “even appears to confound judicial thinking as (Privy Council member) Lord Kerr himself admitted in the case of Maxo Tido, when he said that the epithet ‘worst of the worst and rarest of the rare’ gave rise to conceptual difficulty as to which cases qualify for the death penalty.”

 

Responding to calls for the Privy Council to be replaced by the Caribbean Court of Justice, the government-appointed Constitutional Commission warned last year that this move would not necessarily lead to a different stance on capital punishment, or eliminate concerns about “foreignness”.

 

“In reality, London is not much further away from Nassau than Port-of-Spain (Trinidad),” the commission said.

 

Justice Allen’s call for clarity comes on the heels of anti-crime activist Rodney Moncur’s claim that his upcoming march to “remove impediments to capital punishment” will attract thousands of participants.

 

“The society is tired of the number of murders and mayhem which are taking place in the Bahamas and we believe these murders can be reduced through swift justice,” said Mr Moncur.

 

“We are marching once again to bring pressure on the Parliament of the Bahamas to remove all of the impediments which prevent persons charged with murder from getting bail and to move all of the impediments which prevent murderers from being executed.”

 

The last person executed in the Bahamas was David Mitchell in January 2000.

 

He was convicted of stabbing two German tourists to death.

 

Mitchell’s execution was controversial because it was carried out while he had an appeal pending before the Inter-American Commission on Human Rights.

 

International criticism of the move was followed by a moratorium on capital punishment which lasted until the Privy Council’s 2006 decision in the case of Maxo Tido.

 

January 31, 2014

 

Tribune 242

Bahamians are now engaged in a journey towards economic empowerment and freedom ...the final struggle in the centuries-long voyage from enslavement ...to full freedom for generations to come

The march to Majority Rule, pt. 4

Consider This...

By PHILIP C. GALANIS

“For all those whose cares have been our concern, the work goes on, the cause endures, the hope still lives and the dream shall never die.” - Senator Edward M. Kennedy

As we noted in the first three parts of this series, the march to Majority Rule in The Bahamas can be characterized by two words: Sustained struggle.

Earlier this month, we celebrated the first public holiday to commemorate the day that Majority Rule came to The Bahamas on January 10, 1967.  It was a life-changing event that catapulted the lives of many thousands to unimaginable heights.  We began the march to Majority Rule with the discovery of these islands by the Europeans in 1492 and the subsequent accelerated population growth, aided as much by the American Loyalists who sought sanctuary here following the American Revolution, as by the trans-Atlantic slave trade which engendered numerous attempts by those slaves for freedom from their masters.

We also reviewed how the Burma Road Riot, Bahamians who were “on the Contract” and participants in the General Strike helped to create the framework for the attainment of Majority Rule.

In the final installment of this series, we will continue to Consider This… what were some of the major final milestones that contributed to the centuries-long march to Majority Rule?

The Women’s Suffrage Movement

The 1950s was a decade of tremendous activism by Bahamian women who were deprived of many of the benefits of citizenship.  Women could not vote, could not be elected to Parliament, and could not serve on juries, on public boards, as justices of the peace or in many of the established institutions in the colony.  Much has been documented about the women who led the Women’s Suffrage Movement, and the leading “Suffragettes” included Mary Ingraham, Eugenia Lockhart, Georgiana Symonette, Mabel Walker and Althea Mortimer. The Suffragettes petitioned Parliament for the right to vote and were largely supported in their efforts by the Progressive Liberal Party.

Through Doris Johnson, the Suffragettes asked permission to address members of the House of Assembly in 1959, which was refused. However, Magistrate Maxwell Thompson allowed them to use the Magistrate’s Court for their presentation. The Suffragettes’ activism also included a petition to the governor of the colony to change the law for universal suffrage, which, having failed, resulted in them (along with Henry Taylor, then chairman of the PLP) travelling to London to seek assistance from the British government.

The movement sent another petition to the government of the Bahama Islands in 1960 which was also rejected. The PLP took up the cause and held rallies in Nassau and the Out Islands.  Following a relentless, focused and sustained struggle, on February 23, 1961 Parliament passed a bill, which came into effect on June 30, 1962, to allow women to vote and to serve in Parliament.  Registration of women immediately followed and on Monday, November 27, 1962, women voted in The Bahamas for the first time. That election marked a tectonic shift in the body politic.

The general election of 1962

The general elections of 1962 were historic because it was the first general election in which women voted, the first time that the property and company votes were not allowed to vote and an election in which the PLP actually polled a majority of votes cast although it won significantly fewer seats than the incumbent United Bahamian Party (UBP).  In that election, the PLP polled 32,261 votes or approximately 44 percent, winning only eight seats, compared to the UBP which polled 26,500 votes or 36 percent, but winning 18 seats. The Labour Party polled 3,049 votes which represented four percent, winning only one seat.

Several reasons were given for the PLP’s defeat, notwithstanding its decisive plurality.  Clearly there was considerable gerrymandering of seats, allocating a larger number to the Out Islands where it was much easier for the governing party to influence voting behavior by economic threats and political intimidation. In addition, many voters were still out of the colony “on the contract” and, finally, there was a level of trepidation and concern about the ability of black government to govern and maintain the level of political and economic stability to which the colony had become accustomed.  The victory by the UBP resulted in deep-seated racial polarization for the next five years.

Black Tuesday

The next five years would witness considerably greater political activism in anticipation of the general elections in 1967.  The PLP organized and orchestrated its activities with pin-point precision to maximize its political agenda.  On February 4, 1965, during the debate on the report of the Constituencies Commission to which the PLP objected, Milo Butler and Arthur D. Hanna, both PLP members of the House of Assembly, were named and ejected from the House when they refused to take their seats after having exhausted their 15 minute time limit.

Several months later, on April 27, 1965, Lynden Pindling, then leader of the opposition, stated that Premier Symonette and his government appeared to be intransigent on the issue of boundary changes and, given the gerrymandering experience of the 1962 general elections, determined that more radical recourse was required.   Regarding the government’s intransigence, Pindling stated that he could have “no part in it” and picking up the mace (the symbol of the authority of the House), said that “the mace is supposed to belong to the people of the country and the people are outside”. He then threw the mace through the second-floor window to the people below. Milo Butler followed Pindling’s lead by tossing the hour glass, which was used to time speeches, out of the window.

That event, which came to be known as Black Tuesday, stirred the emotions of the people, so much so that the police had to be called to quell the fervor that had been excited by Pindling who left the House to join the people outside.

Over the next two years, the PLP accelerated its political activity including the appeal to the United Nations Committee on colonialism, a boycott of the House of Assembly and the enlistment of support from noted American freedom fighters and celebrities, including Dr. Martin Luther King, Jr., Sidney Poitier and Harry Belafonte. The PLP also galvanized the support of the unions, churches, and lodges.  The stage was set for the general elections of 1967.

General election of 1967

In addition to the domestic political activism that preceded the elections of 1967, the PLP was successful in exploiting the specter of corruption and conflicts of interest by the UBP government which arose out of several Wall St. Journal articles late in 1966 which alleged the involvement of underworld figures in the casinos in Freeport. Lynden Pindling and Paul Adderley called for a Royal Commission to investigate these allegations and Sir Roland Symonette, the premier, responded by calling a snap general election for January 10, 1967, over 10 months before an election was due.

When the votes were counted, there was a tie: 18 seats for the incumbent UBP and 18 for the PLP with two additional seats: one for an independent, Alvin Braynen, and one for the Labour Party’s Randol Fawkes.  The stage was set for both parties to invite the two individuals to break the tie.  Randol Fawkes, who was more closely aligned with the PLP, threw his support behind the PLP. The story is told that Mr. Braynen had wanted to be the speaker of the House of Assembly but was snubbed by the UBP in 1962, just five years earlier. So when Pindling called Braynen to offer him the speakership, Pindling began the conversation with “Hello, Mr. Speaker,” to which Braynen responded: “Hello, Mr. Premier”.  And the rest is history.  The PLP, now with 20 seats in its voting block, formed the first majority rule government, with Pindling as the nation’s premier, going on to be prime minister for the next 25 years. Fawkes became the minister of labour and Braynen served his remaining years in Parliament as speaker of the House of Assembly.

Conclusion

The long march to Majority Rule in The Bahamas was a sustained struggle that started with Pompey and culminated with Pindling.  Six years later, the Colony of the Bahama Islands joined the community of nations and became the independent Commonwealth of The Bahamas.  The sustained struggle that marked the way to a majority-ruled, independent nation still continues as Bahamians now engage in a journey towards the economic empowerment and freedom that Pindling identified as the final struggle in the centuries-long voyage from enslavement to full freedom for generations to come.

 

• 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.

January 27, 2014

thenassauguardian

- The march to Majority Rule, Part 3

- The march to Majority Rule, Part 2

- The march to Majority Rule, Part 1

The Modern Quiet Revolution in The Bahamas must find root in the development of a cosmopolitan society ...that has no boundaries, no barricades, no social or economic discrimination or segregation ...and no lofty height that could not be attained by the hard work, sustained commitment and discipline of the masses ...It must be a pedestal for the souls of the liberators of the 1967 revolution

A reset of the Quiet Revolution: Towards a new path

RAYNARD RIGBY

We have just marked (and for some, celebrated) the first national Majority Rule Day. Due to the lackluster treatment of the holiday, the significance of the journey to 1967 and the bravery of the faces of the Quiet Revolution must be understood and shared so as to gain a national understanding of why we should pause and reflect on that path in our nation’s struggle.

Much can be said about the successes and failures of our nation in the post-Majority Rule era. There is no denying  that we have made tremendous progress. Since then, the majority has maintained control and has dominated the national political landscape.

This is a singular success of 1967. However, for many, 1967 was (correctly) more than just about the darts and arrows of party politics, or about Pindling for that matter. It marked the culmination of a revolution. Like most revolutions which generally focus on the overhaul of a system or the removal of dictatorial regimes or practices, the Quiet Revolution was grounded in a movement towards the upliftment of a people; of the institutionalization of equal rights and the charting of a national course for the collective advancement of a people, without boundaries, borders, fear or favor.

The truth too is that 1967 was not a struggle to attain black-power-like dominance. This may be startling in light of the fact that there was a prevalent culture of class and race inequality.

The Bay Street oligarchy — the minority — was the reservoir of both economic and political power. They “ran things” and in so doing they held the keys to the future of the majority. However, one glaring and compelling evidence of the cross-race movement that gripped the march to 1967 is the fact that the founders of the Progressive Liberal Party — Henry Taylor, William Cartwright and Cyril Stevenson — were not men of the negro race (arguably they were mulattoes). However, given the class-race culture in the islands at that time they would have enjoyed a pass to enter the socio-economic sub-middle-class.

Understanding 1967 and the magic of the revolution perhaps requires us to be in the bodies and minds of the Exumians and their heroic leader, Pompey. It is to be on the Burma Road revolt at the height of the fight for social justice. It is to join the marches with the suffragists. It is to stand with Clifford Darling and the taxi union in their push for fair standards and practices. It is to hear the voice of Milo Butler as he bellowed out the unfair and discriminatory treatment of working Bahamians. It perhaps is also to stand with Etienne Dupuch and Gerald Cash in their fight in the legislature for the passage of an anti-discrimination resolution. And it requires us to think of what led young minds like Lynden Pindling, Arthur Hanna, Orville Turnquest, Paul Adderley, Arthur Foulkes, Spurgeon Bethell, Oscar Johnson and Warren Levarity, and many others, to organize and join the “people’s struggle” to take on a system that held political power for decades by standing as candidates in the 1962 general election.

The fight of the “majority” was not simply a mission for the further “emancipation” of the former slaves. It was a movement deeply embedded in the spirit of the uniqueness, talent, industriousness and sheer discipline of our history, culture and people. Its central focus was the “final” liberation of the Bahamian soul.

The truth therefore is that 1967 and the ushering in of the first black Bahamian government was a victory for the creation of a more fair and just society.  The myth that must be dispelled is the simplistic notion that the revolution was for the majority, being limited to the blacks.

The revolution was larger than that. It did not have a singular or non-representational agenda or concentration. It was a fight to usher in a sacred sanctity for the natural evolution of the Bahamian spirit. Its embodiment of a communal vision was expressed in the early days of the Citizens Committee which recognized that those blessed to live on these shores were not ordinary but were destined to be a great people, no matter one’s color, creed, religious and political persuasions, abilities and gender.

Simply put, it was a broad social “movement” that saw its constituents as all Bahamians, blacks and whites. It was not discriminatory (whether direct or reverse), but rather progressive and inclusive. It was not class or race conscious. It was liberal and forward thinking.

In today’s analysis of the events that lead to 1967, we must broaden our appreciation for its purpose and value to the development of The Bahamas. It freed a once dormant spirit and it ushered in a push towards a new socio-economic platform that saw the advancement of many Bahamians of the post-1967 generation. It is therefore undeniable that it has its singularly success in the many thousands of faces of Bahamians who advanced far beyond the boundaries of poverty.

The revolution was also transformative, yet in some areas of national life, we have lost our way. We appear (now) to place less emphasis on ensuring the creation of a nation that trends towards common goals and aspirations. We sometimes give the “air” of being a people without direction and focus, and with little national priorities. In areas of our national lives mediocrity is the order of the day. We are devoid of the old values that cemented our “village”. There is an absence of a “collective” national vision. The nation appears to be stagnant and there is a growing sense of hopelessness. Our national leadership seem to enjoy a deficiency of nationalism and we appear to be lost, lacking an agenda towards the further modernization of this nation state. We have lost our progressive edge.

We need to press the reset button to recreate that sense of national purpose, unity and singular call to arms. Our nation’s detour of that purist path must cease and we must restore that once compelling national psyche housed within us.

We must also abandon that elitist attitude that we have achieved all that abounds. We must embrace a new political dispensation that restores us to the paths trod by the revolution. This begs for a recognition that the revolution’s message is relevant and necessary in today’s “modern” Bahamas.

It appeals for a national recommitment to the core and sacred principles of that glorious era so that the new and growing “minority” can be freed from the chains that enslave them. These are the “new” chains of institutionalized poverty, rampant social dislocation and disorder, a glass ceiling that deprives them of social promotion, a system that appears to be ignorant of their plight, struggles and way of life and a society which is shrinking in intellectualism and dynamism.

There is no denying the reality that the tenets of the 1967 revolution can find much space in the modern Bahamas. We have not outgrown her core principles. We should still cry out for bold and progressive leadership which is glued to the idealism of social justice, equality and economic liberation.

We must fill the vacuum for an agenda and plan that is holistic and nationalistic and that has at its core the creation of a society grounded on the foundational pillars of shared prosperity and community. That sense of community though is not restricted to an egotistical definition of national heritage and identity. It is an all-embracing journey that ties together the virtues of productivity, industry, integrity, knowledge, love and peace transcending a narrow interpretation of who is Bahamian.

The modern revolution must find root in the development of a cosmopolitan society that has no boundaries, no barricades, no social or economic discrimination or segregation, and no lofty height that could not be attained by the hard work, sustained commitment and discipline of the masses. It must be a pedestal for the souls of the liberators of the 1967 revolution.

Our work is not yet complete. We must find our voices and courage to stand firm to secure the dreams of the future generations of Bahamians. Our country must be restored to that nobler path of prosperity, peace and love.

 

• Raynard Rigby is an attorney-at-law and former chairman of the Progressive Liberal Party.

January 22, 2014

thenassauguardian

The Democratic National Alliance (DNA) on the Christie administration's deal with Bahamas Telecommunications Company Ltd (BTC) and Cable and Wireless

Bahamians are NO Fools!

The Democratic National Alliance (DNA) is incredulouslydisappointed in the Christie administration, which, as failed negotiations withCable and Wireless further proves, continues to show no real plan forgovernance.

Many Bahamians voted for the Progressive Liberal Party onthe premise that Bahamas Telecommunications Company (BTC) ownership would bereturned to them. They deserve an apology—one from the former Prime Ministerfor selling the corporation in the first place and one from the current PrimeMinister for selling such a far-fetched dream.

“Bahamians are no fools. They are no longer comforted bypromises that lack projection or feasible solutions. We deserve better. Wedeserve more. We deserve a government that can close the deal,” said Mr.McCartney.

Since the deal with BTC and Cable and Wireless took effect,Prime Minister Perry Christie blindly assured Bahamians that his Party could returnto them majority stake. However, according to a recent announcement, that didnot happen. “This is not surprising news” says DNA party leader BranvilleMcCartney “as, like many of their other initiatives, ending in complete andutter failure. Whether it’s the promiseof 10,000 jobs; the mortgage relief plan that provided no relief to anyone; thegaming referendum debacle or the proposed economy destroying VAT plan, thisgovernment string of failures in less than two years is the only recordbreaking thing they’ve done, unmatched by any government in our past.”

The past government sold BTC under such clauses that wereindefinitely irreversible. However, theChristie government has proved that they and the former Ingraham Administrationare two sides of the same coin. Theyboth seem to believe that government ownership of 49% equates to majorityownership.

“While we appreciate that BTC has pledged to give a littlemore in charitable donations, 2% is not a huge break considering that BTC isalready a major sponsor of most national events and initiatives,” said Mr.McCartney.

The DNA is demanding that the government, or BTC, share withthe public the value of what has been given to charitable organizations in 2013and the value of the 2% promised.

The Government is searching for answers in the darkness,wasting time and taxpayer dollars on schemes that result in no wins for theBahamian people. Crime worsens, unemployment rises and regrets soar, asadmitted by Mr. Christie, himself.

Perhaps now Mr. Christie can use his time and resources toplot rational plans to combat crime, create jobs, relieve homeowners andbusiness owners, and explore reasonable tax alternatives. He owes taxpayersthat much. As of this day, the Christie administration is known as the governmentthat makes promises that they can not keep.

January 23, 2014

Democratic National Alliance (DNA)

What were some of the major milestones that contributed to the centuries-long march to Majority Rule in The Bahamas?

The march to Majority Rule, Part III

Consider This...

By PHILIP C. GALANIS

History cannot give us a program for the future, but it can give us a fuller understanding of ourselves, and of our common humanity, so that we can better face the future. - Robert Penn Warren

As we noted in parts I and II of this series, the march to Majority Rule in The Bahamas can be characterized by two words: sustained struggle.

On January 10, we quietly celebrated the first public holiday to commemorate the day that Majority Rule came to The Bahamas in 1967.  It was a life-changing event that catapulted the lives of many thousands to unimaginable heights.   Last week we reviewed three important milestones in the march to Majority Rule that helped to create the framework for the attainment of that achievement: the by-election of 1938, the Burma Road Riot of 1942, and the Contract beginning in 1943.  This week and in the final week in January, we will continue to Consider This…what were some of the major milestones that contributed to the centuries-long march to Majority Rule?

The 1950s were decisively transformative on the march to Majority Rule.  It was a decade that witnessed the formation of the PLP in 1953, the 1956 Resolution on Racial Discrimination in the House of Assembly and the 1958 General Strike.

The formation of the PLP

The Progressive Liberal Party (PLP) was established in 1953, following an attempt by the Citizens’ Committee to actively address some of the rampant discriminatory practices by the white Nassau elite.   The Citizens’ Committee, formed in December 1950 initially protested the government’s refusal to let Bahamians view three films: “No Way Out” (starring Bahamian actor Sidney Poitier), “Lost Boundaries” and “Pinky” all of which addressed societal injustices.  Many of the members of the Citizens’ Committee, which was led by Maxwell Thompson, Cleveland Eneas, and A. E. Hutchinson and whose members included Jackson Burnside, Randol Fawkes, Gerald Cash, Kendal Isaacs, Marcus Bethel and other prominent personalities, suffered brutal discrimination and many of its members were deprived of the ability to earn a living by the Bay Street oligarchy as a result of their social activism.

In October, 1953 the PLP was formed by Henry Taylor (who would become the third Bahamian governor general in an Independent Bahamas from June 26, 1988 to January 1, 1992), William Cartwright and Cyril Stevenson with a platform that responded to the challenge by Rev. H. H. Brown that: “The Progressive Liberal Party hopes to show that your big man and your little man, your black, brown and white man of all classes, creed and religions in this country can combine and work together in supplying sound and successful political leadership which has been lacking in The Bahamas.”

The PLP made bold progressive promises for a more equitable social structure including equal opportunities for all Bahamians, better education, universal suffrage, stronger immigration policies, lower-cost housing and the development of agriculture and the Out Islands.

In the early days of the PLP, its members were subjected to abject ostracism and victimization by the white elite, including the loss of jobs and bank credit, as well as canceled contracts.  In 1955, Lynden Pindling and Milo Butler emerged as the leaders of the party, appealing to the black masses to mobilize in advance of the general elections of 1956.  The party also attracted Randol Fawkes, the founder of The Bahamas Federation of Labour in May 1955.

The general election of May 1956 was the first to be fought by an organized political party.  The PLP won six seats in the House of Assembly, four in Nassau and two in Andros.  That election significantly accelerated the march to Majority Rule.  In March 1958 the white oligarchy formed themselves into the second organized political unit, the United Bahamian Party (UBP).  The UBP would later disband and its members would join forces with the Free National Movement (FNM) in 1972.

The 1956 Resolution on Racial Discrimination in the House of Assembly

In the wake of rampant racial discrimination that prevented access for black people to hotels, movie theatres, restaurants, and other public places, H. M. Taylor, the chairman of the PLP, whose platform vowed to eliminate racial discrimination in the colony, tabled a number of questions to the leader of the government.

Moved by this and in light of his own disgust with racially motivated practices, in January 1956, Etienne Dupuch, the editor of the Nassau Tribune and a member of the House of Assembly for the eastern district, tabled an Anti-Discrimination Resolution in the House of Assembly. During his passionately eloquent speech on the resolution, the speaker of the House of Assembly ordered Dupuch to take his seat, threatening, if he refused to do so, that he would be removed from the chamber by the police.  Dupuch responded: “You may call the whole Police Force, you may call the whole British Army…I will go to [jail] tonight, but I refuse to sit down, and I am ready to resign and go back to the people.”  The speaker abruptly suspended the House proceedings.

Although the resolution was supported by H. M. Taylor, Bert Cambridge, Eugene Dupuch, C.R. Walker, Marcus Bethel, and Gerald Cash, it was referred to a select committee, effectively killing it.   However, the following day, most of the Nassau hotels informed the public that they would open their doors to all, regardless of their race

The 1958 General Strike

The General Strike began in January 1958 after several months of tension that arose because of the government’s plans to allow hotels and tour buses that were owned by the established white tour operators to provide transport for visitors to and from the airport, at the expense of predominantly black taxi drivers who made a large portion of their living transporting tourists between the new Windsor Field (Nassau International) Airport and downtown hotels.  To allow the hotels and tour companies to supplant the taxi drivers would severely curtail the ability of black taxi drivers to earn a decent living.

The government learned that the taxi drivers would vehemently protest this arrangement when they blockaded the new airport on the day it opened.  On that day, nearly 200 union taxi drivers stopped all business at the airport for 36 hours, showing their determination to protest the government’s plans.   Negotiations on 20 points ensued between the union, represented by Lynden Pindling and Clifford Darling, the union’s president, and the government for the following eight weeks, but broke off after they could not agree on one final point.

On January 11, 1958 the taxi union voted for a general strike and the next day the General Strike commenced with the cessation of work at hotels, which was supported by hotel and construction workers, garbage collectors, bakers, airport porters and employees of the electricity corporation.   The strike lasted until January 31 and prompted a visit to the colony by the secretary of state for the colonies who recommended constitutional and political and electoral reforms which were incorporated into the General Election Act of 1959.  Following the General Strike, male suffrage was introduced for all males over 21 years of age and the company vote was abolished.

Undoubtedly, the General Strike accentuated the ability of effective reform that could be achieved by the peaceful mobilization of the black majority.

Conclusion

Next week, we will review the decade of the 1960s and discuss how the Women’s Suffrage Movement, the 1962 general elections and Black Tuesday culminated in the eventual attainment of Majority Rule with the general elections of 1967.

 

• 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.

January 20, 2014

thenassauguardian

- The march to majority rule, pt. 1

- The march to majority rule, pt. 2

- The march to majority rule, pt. 4

Prime Minister Perry Christie says that he should have taken the bold step of regulating web shops ...after coming to office in 2012 ...instead of taking the referendum route

PM regrets referendum

Christie says he should have regulated web shops

By CANDIA DAMES
Guardian News Editor
candia@nasguard.com

Prime Minister Perry Christie has admitted regret over going to referendum on the gambling issue nearly a year ago and said he should have taken the bold step of regulating web shops after coming to office instead of putting it to a vote.

“I ought to have moved immediately to regulate the industry without going to a referendum and to articulate to the people of the country that we were going to have enormous problems in trying to have an environment where it is not regulated, said Christie when asked by The Nassau Guardian if he regrets not ‘having a horse in the race’.

The government refused to take a position ahead of the referendum, and some observers have opined that this contributed to the referendum failing.

Christie said the government will eventually have to do something about the web shops and noted concerns connected to money laundering and unregulated ‘banking’.

“Today, the governor of the Central Bank is demonstrating concern for this because what has happened is there has now been the evolution of a new economy that is underground, a new banking order that is taking place where mortgages are being given and where huge sums of money are moving,” he said in an interview on Friday.

“You always have money laundering concerns when you don’t regulate, but I’m thinking now of when the banks say you can’t bank your money, the Central Bank says you can’t invest in treasury bills, the Central Bank says you can’t export your money, you can’t put it in another country, then you ask the question if that is the case, what is supposed to be happening to the money?

“And so that is a very trying set of circumstances for me now.”

Christie hinted that the government might still regulate web shops.

“As I said in a meeting with the church [on Thursday], I said anyone coming out of the referendum of the kind that we had would require a new level of moral authority to address this issue in the face of the referendum result,” he said.

“That moral authority has to come in a different way. And by that I mean this, if the country was faced with a situation where we were collapsing and things were really very difficult then I have to look at the facts, that I have no alternative but to go to the country and explain to them, I can find $50 million or $60 million or $100 million in an area that can be legitimately acquired and say to them this is what I have to do and live with the results of such a decision.

“I am not at that point yet, but I’m at the point where discussions are being held, as they should be, over this really significant development in our country that has to be addressed.  The good news is it’s not being ignored.”

But Christie said he does not see the failed referendum as a low moment in his public life.

“I think it has been a low result for the country,” he said.

“I don’t have low moments in politics.  This is my 40th year in public life and that’s a lifetime, and so I have been able to introduce in my own life a hardening where I’m able to resist the temptation to feel sorry for myself and to move on.”

On January 28, 2012, voters were asked whether they support the regularization and taxation of web shops, and whether they support the establishment of a national lottery.

The total number of votes cast against the web shop question was 51,146 or 62 percent of the votes cast versus 31,657 or 38 percent of the votes cast in favor of taxing web shops.

Less than 50 percent of registered voters voted.

However, the Christian Council has demanded that the government respect the results of the referendum.

Last week, The Nassau Guardian reported on a Public Domain survey that showed strong support for web shops.

Respondents were asked whether they support the legalization of web shops.

Thirty-seven percent said they “strongly support” and 18 percent said they “somewhat support”.

Thirty-two percent said they “strongly oppose” and another eight percent said they “somewhat oppose”.

Five percent of respondents did not know or did not answer.

“The fact is that although the majority of Bahamians voted against such legalization in last year’s referendum is neither persuasive nor conclusive,” said Philip Galanis, who coordinated the ‘Vote Yes’ campaign.

“We maintain that the referendum results do not represent the national sentiment on this issue, particularly in light of the low voter turnout.”

A legal challenge brought by web shop operators after the referendum remains tied up in courts as their businesses continue to operate in the open.

thenassauguardian

January 20, 2014

...the implementation of Value Added Tax (VAT) along with The Bahamas’ accession to the World Trade Organisation (WTO) will greatly improve the country’s market and trade access

VAT Will Increase Market Access, Says Pinder

by Korvell Pyfrom
Jones Bahamas

Financial Services Minister Ryan Pinder said yesterday Bahamians will have greater market access and trade when Value Added Tax (VAT) is implemented later this year.

The government is preparing to table VAT legislation which is expected to be implemented on July 1.

The government has indicated that VAT will be at a rate of 15 per cent.

Mr. Pinder said that the implementation of VAT along with The Bahamas’ accession to the World Trade Organisation (WTO) will greatly improve the country’s market and trade access.

“The VAT legislation will help us stimulate greater market access and greater trade,” he said. “Duty rates on goods are going to proportionally decrease so the cost of goods shouldn’t be an inflationary aspect. Value Added Tax is intended to reach services rather than have a measurable effect on goods.”

Mr. Pinder also assured that the implementation of VAT will bring about transparency as he noted that it would be in the best interest of companies to comply and file claims accurately.

“Every company will have to file a return with the government in order to claim that credit and if that company doesn’t file the claim they will end it up paying too much VAT which will be harmful to their business. So it’s almost a self enforcing mechanism to keep the integrity within the companies that have to report. It’s a small segment of the commercial base – those over $100,000 in turnover.”

Prime Minister Perry Christie said on Monday that the objective of VAT is to have a system that provides adequate revenue for modern governance while providing economic growth, transparency and efficiency.

The prime minister also noted that the government has commissioned a final study on the issue.

Mr. Christie has also indicated that economists from both New Zealand and the United States will be coming to The Bahamas to advise the government.

The government expects to raise an additional $200 million in revenue through VAT.

15 January, 2014

The Bahama Journal

Significant milestones in the struggle for Majority Rule in The Bahamas

The March to Majority Rule, Part II

Consider This...

By PHILIP C. GALANIS

History is for human self-knowledge... the only clue to what man can do is what man has done.  The value of history, then, is that it teaches us what man has done and thus what man is. - R.G. Collingwood

As we noted last week in Part I of this series, the march to Majority Rule in The Bahamas is a story of a sustained struggle.

On Friday past, we observed the first public holiday to commemorate the day that Majority Rule came to The Bahamas on January 10, 1967.  It was a life-changing event that catapulted the lives of many thousands to unimaginable heights.  Last week, we highlight two important events that helped to create the framework for the achievement of Majority Rule.  This week and for the remaining weeks in January, we would like to continue to Consider This…what were some of the milestones along the centuries-long march to Majority Rule?

This week we will consider three important milestones, namely the by-election of 1938, the Burma Road Riot of 1942, and the Contract beginning in 1943.

The by-election of 1938

In July 1938, shopkeeper Milo Butler decided to contest a by-election that was called for the Western New Providence seat, facing multi-millionaire, Harry Oakes who was not even in The Bahamas for the election, allowing Kenneth Solomon to manage his campaign.

The Bay Street Boys worked hard to derail Butler’s campaign, even getting his credit stopped at the Royal Bank of Canada.  At the polls, in front of police who were stationed there, Oakes’ representatives flagrantly distributed money and liquor to buy votes.

When Butler realized he was going to lose his deposit, he announced he would lodge a protest against the bribery and, the day after the election, he and his supporters went to the Colonial Secretary’s Office to voice his grievances.  Butler drafted a petition to the governor calling for the enactment of the secret ballot, the creation of an election court of appeal and a fairer representation of the black population on all public boards and in the civil service.

Although rumors about a major riot proved to be false, Governor Dundas took the threat very seriously and became convinced that the secret ballot was the very least that should be done to defuse the situation.  Taking the governor at his word when he announced that he would dissolve the House of Assembly and call a general election where the secret ballot would be the central issue, the House immediately addressed the issue.

In June 1939 an act was passed for a five-year trial period for the secret ballot in New Providence.  However, the ‘Out Islands’, where one-third of the voters resided, returned two-thirds of the members of the House and the Bay Street Boys didn’t want to tamper with that winning situation, so the secret ballot did not come to the Islands until 1949.

The Burma Road Riot

By 1942, the majority of Bahamians, most of whom were black, suffered under tremendous social, economic and political conditions.  A miniscule minority of white Bahamians were engaged in the retail and wholesale trade, the real estate industry and the professions.  The sponge industry had recently collapsed and tourism in the islands, albeit in its infancy, and the construction industry were adversely affected by the beginning of World War II. These combined factors significantly contributed to the abject poverty in which the vast majority of Bahamians lived.

When the United States entered the war in 1941, the British and American governments decided, in order to aid in the war effort, to enhance the existing Oakes Field Airport in New Providence and also to build a new one in the western Pine Barrens of New Providence, later called Windsor Field that would evolve into today’s Lynden Pindling International Airport.  Both airports were worked on by the American firm, Pleasantville Incorporated, providing jobs for Bahamians, who worked alongside American workers.

The British Governor of The Bahamas, the Duke of Windsor, and the American government had secretly agreed that Bahamian workers would be paid at local rates, four shillings per day, while their American counterparts earned more than twice as much.  Although Pleasantville Incorporated was willing to pay higher wages to Bahamians, this was done because the Duke was concerned that Bahamian workers should not get used to such high wages since local employers would not be able to match that kind of salary once this job ended. Bahamian workers resented this untenable situation but did not have a formal vehicle to redress the wages and working conditions disparities.

The Bahamian laborers complained to Charles Rodriguez who headed the Labour Union and the Federation of Labour.  Notwithstanding his efforts to address the disparities, because they were not resolved in a timely manner, Bahamian laborers assembled on May 31, 1942, demanding equal treatment. On June 1, they congregated at the main Oakes Field office of Pleasantville and, armed with cutlasses and clubs, marched to the Colonial Secretary’s Office.  Failing to obtain satisfaction, they rioted up and down on Bay Street, damaging and looting stores there. A curfew was established but the riot continued the following day. By the time the riot ended, five persons were killed and many more were wounded.

In the aftermath of the riot, the Duke of Windsor appointed the Russell Commission, which, along with a committee appointed by the House of Assembly, determined that the riots resulted from the inequitable disparity of wages between the Bahamian and American workers. The Russell Commission also determined that the riots were sparked by the absence of social legislation as well as economic difficulties and political inequities.

Burma Road is not a street in The Bahamas. The Burma Road Riot was named after a place Bahamians knew from the newsreels of the day: the 717-mile mountainous Burma Road that linked Burma (now called Myanmar) with the southwest of China.  Built by 200,000 Burmese and Chinese laborers and completed by 1938, during World War II, the British used Burma Road to transport materiel to China before Japan was at war with the British. In 1940, the British government yielded to Japanese diplomatic pressure to close down the Burma Road for a short period. After the Japanese overran Burma in 1942, the Allies were forced to supply Chiang Kai-shek and the nationalist Chinese by air.

The Contract

Following the Burma Road riot and the layoffs after the completion of the airbases, the Duke of Windsor, worried about further unrest, negotiated with the American government for Bahamian laborers to work in Florida to alleviate the rampant unemployment here and to fill the United States’ manpower shortage that resulted from the war.  The 1943 agreement became  known as “the Contract” or “the Project”.

Individual contracts were executed for each worker, and stipulated the terms of employment, including a deduction for amounts to be sent back to their families in The Bahamas and an agreement not to be discriminated against on the basis of their color, race, religious persuasion or national origin.

While the 5,000 Bahamian laborers, mostly unskilled males, initially worked on farms and plantations in Florida, given the severe manpower shortages in other states, many Bahamians were transferred as far north as New York and as far west as Indiana.  Generally, workers spent six to nine months in the United States and then returned The Bahamas.  Some abandoned their contracts and others never returned to The Bahamas, sending for their families to join them in the United States, thereby accounting for the presence of many Bahamians who still live in the United States.

The Contract was transformative in many ways, primarily exposing Bahamians to overt, institutionalized racism in America.  The workers returned with an unwavering determination that racism and discrimination like that would have no place in their Bahamas.

Conclusion

Next week, we will review the roles played by the formation of the PLP in 1953, the 1956 Resolution on Racial Discrimination in the House of Assembly and the 1958 General Strike, all of which fuelled the march to Majority Rule.

 

• 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.

January 13, 2013

thenassauguardian

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