The value-added tax (VAT) implementation date nears ...despite the widespread lack of understanding about it in the Bahamian society

To Be Or Not To Be - Bahamians Want Answers On Vat

Tribune 242 Editorial:

BAHAMIAN businessmen are becoming more agitated as the date for the implementation of VAT nears with only reassurances from legislators that draft legislation as to what it will mean to them is on its way.

Gowon Bowe, a Tax Coalition co-chair, has urged that the proposed legislation be brought to parliament before it takes its summer recess.

“If we don’t do a lot in the next six to eight weeks,” he said, “we would be right back in the same situation we were facing when we were looking at July 1 as the implementation date, with the business community again saying that they don’t have enough time.”

Mr Bowe said that the business community has still not had “the critical elements. There is no legislation, no regulations on what will be exempt, or what is ultimately going to happen. We need to urge the Government to be proactive.

“There is a concern,” said Mr Bowe, “that time isn’t on our side in that regard. We understand that there was a lot going on in the Budget, but now that is out of the way, this is the most critical time in terms of our fiscal course of action. We have had some casual conversations with the Financial Secretary and he had indicated that they were just waiting on Cabinet now.”

John Rolle, the Ministry of Finance’s financial secretary, recently confirmed to Tribune Business that VAT preparation/readiness efforts were being delayed because they were waiting for “final directions” from the Government.

Government brought two tax experts from New Zealand — one of the few countries that has a good word to say for VAT – to advise legislators on its merits and how to implement it.

Dr Don Brash and Mr John Shewan, both closely involved in the implementation of New Zealand’s Value Added tax in 1985-86, could not emphasise enough the importance of an extensive education programme, both for business and the general public. It was this programme that was the secret of New Zealand’s success. Such a programme would be even more important for the Bahamas, a country, unlike New Zealand, that has no income tax, but relies solely on indirect taxation and trade tariffs. In other words, Bahamians in general are not tax savvy.

“The reason our education campaign was so successful,” said Professor Shewan, “was because there was a commitment to an 18-month educational programme, six months of which was prior to the implementation date, but the most important things happened 12 months after the implementation because there were a series of detailed explanation programmes targeted at all kinds of groups.”

Government, which had planned to implement the tax on July 1 —13 days ago — was forced to delay it to January 1 next year — six months away – because, not only was legislation not ready, but there was not enough time to discuss it with the business community or to educate the public. Soon, if government continues its thumb-twiddling, another delay for implementation will have to be announced.

In their report, the New Zealanders expressed concern “at the widespread lack of understanding of how a VAT would operate in the Bahamas”. They were also “concerned at the complexity of the VAT proposal as currently envisaged (obviously government’s first draft on their arrival). This complexity would lead to high compliance costs and potentially extensive abuse of the system,” they predicted. Hopefully, this complexity has since been simplified. The state of business in the country today can certainly not absorb high compliance costs.

It was explained that VAT was urgently needed, not only to expand government’s tax base, but also for the country to be eligible to join the World Trade Organisation (WTO). Having had to reduce its original 15 per cent tax proposal to 7.5 per cent, the government maintains that it cannot afford to also reduce Customs duties. If joining the WTO is its objective, then Bahamians can count on the VAT rate being increased so that the Bahamas – a non producing country — can qualify for WTO membership. Qualification means that all Customs duties have to be abolished. Government, while explaining VAT, should also explain in detail the advantages of the Bahamas having WTO membership.

Several months ago, Social Services Minister Melanie Griffin outlined how our sluggish economy has hurt those in the lower income brackets – the group with the potential of being the most affected by VAT. With the September opening of schools, Mrs Griffin said, there was a substantial increase in demand on Social Services to feed and equip children for school. At the time, she was being interviewed she said that 1,606 out of just over 3,500 children had requested uniform assistance.

There was also more demand for food stamps, a relief system that is growing, she said.

Mrs Griffin appealed to corporate Bahamas and private citizens to partner with government to assist children in need. Recently the 58-year-old Ranfurly Home for Children appealed for financial aid. Mrs Griffin said government would assist to make certain that the Home, which has cared for so many children sent by Social Services, would not have to close. She also said that her Ministry will have to step into the breach to assist those who might be severely affected by the implementation of VAT.

A few days ago, we were discussing VAT with a businessman who said that what his company had traditionally set aside as donations for the various charitable organisations and student scholarships would now go to VAT. This shift in donations will put an even heavier strain on Mrs Griffin’s Ministry. In other words VAT will force the public sector to curb its generosity.

No matter how we look at it, VAT is going to create a vicious circle, and regardless of how it is introduced, Bahamians will not be satisfied until the government demonstrates that it too is making substantial cuts in its unnecessary spending. Bahamians are not going to pay taxes to give government a licence to spend foolishly. 

July 14, 2014

Tribune242

Youth unemployment in The Bahamas

Halkitis concerned about youth unemployment

By KRYSTEL ROLLE-BROWN
Guardian Staff Reporter
krystel@nasguard.com

Although the unemployment rate has generally improved, Minister of State for Finance Michael Halkitis yesterday said the rate of joblessness among young people remains a concern and will require “focused attention”.

Unemployment among young people aged 15 to 24 decreased from 32.3 percent to 28 percent, but remains higher than all other groups.

Halkitis said the rate of unemployment historically has been considerably higher than any other age group. However, he said the government is working to “open new doors of opportunity” for the youth and improve the economic conditions for all.

“The emphasis is on growing the economy so everyone in all age groups benefits while at the same time making the investments in education and training to equip everyone but especially young people to take advantage of the opportunities that are becoming available,” Halkitis said.

According to the latest survey, 8,390 net jobs have been added to the economy since May 2012.

The number of people employed in May 2012 was 160,650 compared to the 169,040 people employed as of May 2014.

Halkitis said the government is looking to improve upon that figure by focusing on education as well.

“We believe that the creation of the national training agency is helping young people in the area of skills development to help them to take advantage of opportunities,” Halkitis said. “This had been a major concern among employers, the lack of skills particularly the so-called soft skills. For example, customer service.

“Also, the minister of education is introducing an equivalency diploma geared towards individuals who have not finished high school. The diploma will open new doors of opportunity for young people.

“The development of BAMSI (Bahamas Agriculture and Marine Science Institute) will provide training in the area of agriculture and marine science and allow all including young people to exploit opportunities in the area of agriculture and marine science.”

Unemployment in The Bahamas dropped from 15.4 percent in November 2013 to 14.3 percent in May 2014, according to the results of the latest Labour Force Survey released on Friday.

The survey conducted in May references the period April 28 to May 4, 2014.

While the economy isn’t where the government wants it to be, Halkitis said things are looking up.

“[I would be] happy with a faster pace of growth but [I am] pleased that things are moving in the right direction,” he said. “It gives cause for continued optimism.”

The survey shows that discouraged workers declined by 27.8 percent nationally, from 6,765 in November 2013 to 4,880 in May 2014.

The number of discouraged workers fell from 3,335 to 2,920 (12.4 percent) in New Providence and dropped from 1,915 to 760 (60 percent) in Grand Bahama.

Halkitis said the decrease in the number of discouraged workers is a “positive indication of the improving health of the Bahamian labor market.”

July 21, 2014

thenassauguardian

Support what it means to be Bahamian ...Remove the anti-Bahamians show, the Kreyol Connection

Petition by Kishon Turner 

Nassau, The Bahamas:

To: Brent Dean, The Nassau Guardian: Guardian Radio
URCA 

“Those who wish to be Bahamian also have a responsibility. They have a responsibility to try to be like us; to try to share our hopes and aspirations; to help us build  and achieve. They do not have a responsibility to try and remake us in someone else’s image; they have no responsibility to retard our progress or to destroy everything Bahamian.

-Sir Lynden Oscar Pindling-

                                                 The Kreyol Connection

"The Haitians didn’t come to the Bahamas to take over. Haitians go through the Bahamas. They happened not to get to the United States and they got STUCK HERE. They still want to go…Some people have waited 20 years to go to the United States. Forty percent of himself is in the United States, thinking that he’s already there. His family is there. Twenty percent of him is still in Haiti. The rest of him is here riding a bike, refusing to buy a house here."

-Louby Georges-

The main focus of the Kreyol connection is not to promote, “Loyalty to our Bahamas over and above all other; zeal for our Bahamas unmatched by any other; concern for other Bahamians over all others”, but rather disdain for our National Leaders like Mr. Loftus Roker and to trample on the Legacy of Sr. Lynden Pindling and his vision for the Bahamas.

The show which is undermining Bahamians authority through its clandestine approach, assists the “underground network” of illegal Haitian nationally, who undermine Bahamians and authority at every level.  The Illegal Haitian Nationals have proven to have no respect for our laws; they pay no taxes, yet benefit from our healthcare services, social services assistance and free education. 

  

There are 44 different Shanty Towns in New Providence benefiting from information provided by this show and the owners of the Nassau Guardian only sees dollar signs from this underground community.  The show represents a national security risk in that the main audience of the show cares little for this country; hate our way of life, our customs and morals.  The show is pandering to this group who has shown they are willing to undermine what is Bahamian and to show a betrayal to the Bahamas.

What does it take to be a Bahamian?

“Loyalty to our Bahamas over and above all other; zeal for our Bahamas  unmatched by any other; concern for other Bahamians over all others.”

-Sir Lynden Oscar Pindling-

Sign the Petition Here

Court grants permission to have a judicial review of the government’s consultation process ...over Mr. Peter Nygard’s applications

Injunction Imposed Against Government Over Nygard Cay

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

IN a move being hailed as a victory for greater transparency in government processes, Supreme Court justices granted injunction requests against the government yesterday that prevents the Christie administration from making decisions on billionaire fashion mogul Peter Nygard’s applications for building permits and Crown land.

The environmental group Save the Bays (STB) and 103 Lyford Cay residents and property owners suing the government were given permission to have a judicial review of the government’s consultation process over Mr Nygard’s applications.

The justices’ decision came despite the government’s move last week to extend its consultation process after admitting confusion and flaws in the process thus far.  As the latest controversy to raise questions about the government’s actions when granting certain permits and approvals, some residents are concerned about the effects Mr Nygard’s activities at Simms Point could have on the environment.

They fear that the government may try to not only sanction his requests as a favour for his financial contributions to the Progressive Liberal Party over the years, but also retroactively sanction his reclamation of Crown land.

Speaking to The Tribune yesterday, STB attorney Fred Smith said his group was forced to seek an injunction after government officials failed to respond to a letter he sent requesting that it not act on Mr Nygard’s applications until a judicial review had been concluded.

“When we filed our judicial review on July 7, we wrote to the government and invited them to give an undertaking not to continue with the process and not to make decisions on Mr Nygard’s applications pending the results of judicial review,” he said.  “They failed to even reply to our letter and consequently we were forced to file for an injunction to restrain the government.”

Explaining the results of yesterday’s court proceedings, which were closed to the general public, he said: “Supreme Court Justice Rhonda Bain granted permission to issue a judicial review against the prime minister, deputy prime minister, Director of Physical Planning Michael Major, the Town Planning Committee, Minister of Environment Kenred Dorsett, Minister of Transport and Aviation Glenys Hanna-Martin, and Building Control Officer Greg Delancy.

“This application for judicial review relates to the consultation process which the government purported to embark upon and Save the Bays’ application says it is fundamentally flawed and procedurally unfair with a view to retroactively authorising illegal construction, dredging and land reclamation activities that have taken place at Nygard Cay since 1984, where Mr Nygard has reclaimed nearly three acres of Crown land by constructing walls, concrete docks, helicopter pads, buildings, temple and other structures on the sea bed on the north side and south side, mostly without permits and without a Crown lease.

“The PM holds Crown land in trust for the benefit of the Bahamian people and Mr Nygard’s works affect the ecologically sensitive and culturally important Clifton heritage site, critical for diving recreation for Bahamians and tourists.”

Mr Smith said the court’s decision restrains the government from considering Mr Nygard’s current building permit applications, future building applications, his Crown lease application and anticipated applications for works relating to existing and nonexistent sea bed structures.  He said the injunction restricts the government from granting any permits, approvals or leases with respect to the aforementioned applications until the judicial review is completed.

The court, he said, ordered that there should be an inter-party hearing of the injunction on August 12. In the meantime, the government’s consultation process has been suspended.

As for the Lyford Cay residents and/or property owners who collectively filed for judicial review, their injunction request was granted and will remain until the attorney general either applies to set it aside or the trial of their judicial review ends.

Mr Smith said: “We are pleased that we have been given permission to issue this judicial review which deals entirely with a process and it continues the work of Save the Bays in promoting regulated development, ie, just follow the rules rather than making it up as you go along.  Parliament is responsible for making the laws and has passed Acts.

“These cases are being mounted by Save the Bays to ensure that the executive branch of government respects throughout the Bahamas laws passed by the legislative branch.  Unfortunately we have to resort to the judicial branch to keep the executive branch in line.  This is not how a country should be run.  The government is not only Office of the Prime Minister; it also comprises Parliament, the executive branch and judiciary branch. Each must respect each other’s roles.

July 18, 2014

Tribune 242

Stop The Haitian Invasion of The Bahamas

The Stop The Haitian Invasion of The Bahamas petition to Hon. Fred Mitchell MP, Minister of Foreign Affairs and Immigration was written by Bahamas_Nationalist_Alliance and is in the category Government at GoPetition. Contact author here. Petition tags: haitian invasion, haitians bahamas, haitians invade bahamas

The electorate pleaded with every administration for four decades, to implement measures to protect the Bahamas and Bahamians from the enduring illegal Haitian migrant invasion without resolution.

This lack of action has lead to total mistrust and feelings of betrayal in those elected based on promises to the citizenry of the Bahamas.

General consensus of Bahamians today is, we are about to cross the point of no return with illegal Haitian migration, as their prevalence in our society strongly indicates their numbers are equal to, if not greater than ours with 10.5 Million more Haitians at the ready to risk life and limb to get here.

Tax paying law abiding Bahamians are deprived of jobs, adequate education and medical care because our society, schools, hospitals and clinics are absolutely overwhelmed with Haitian nationals.

Thousands of Bahamians are unemployed since Haitians have systematically infiltrated virtually every profession by acquiring trades from Bahamians then undermining those Bahamians by filling these trades, jobs and services for lesser wages.

As evidenced by 6 article links below, Haitians smuggle themselves into our country, engage in every illicit and corrupt activity imaginable, incontrovertibly compromised the police force, defense force, immigration department, passport office, civil services’ and the highest levels of government.

http://ireport.cnn.com/docs/DOC-1065855

http://www.tribune242.com/news/2014/apr/03/mitchell-silent-over-visa-probe/

http://www.tribune242.com/news/2014/mar/07/police-probe-claims-fake-visas-haitians/

http://www.tribune242.com/news/2012/feb/14/mitchell-warns-ingraham-not-to-take-bahamians-for/

http://www.caribbeannewsnow.com/topstory-Bahamas-opposition-calls-for-consistent-immigration-policy-1640.html

http://bahamaspress.com/2011/06/06/ingraham-tell-haitians-to-bahamas-government-in-the-chief-is-a-leak/


Inherently corrupt, Haitians clandestinely network nationally to undermine Bahamians and authority at every level, have proven to have no respect for our laws, pay no taxes, yet benefit from free education, medical and social assistance, on the backs of tax paying Bahamians, whom they reduced to second-class citizens by efficiently disenfranchising them from rightful State conveniences.

In the interest of protecting present and future generations of indigenous Bahamians, our way of life, and the national security of our country, and to discourage and reverse the perpetually escalating Haitian invasion:

As your employers, we the undersigned citizens, registered voters and peoples' of the Bahamas, standing in solidarity, hereby petition the Government of the Bahamas to expeditiously legislate the following policies and measures:

1) Revoke, recall and review for authenticity every work permit, citizenship and passport issued to Haitian nationals post Independence July 10, 1973.

2) Revoke citizenship's granted to all Haitian nationals and their offspring obtained post Independence July 10, 1973.

3) Post Independence July 10, 1973 qualifying Haitian nationals and any offspring will qualify for residency status with a right to work only.

4) Table all treaties with Haiti post Independence July 10, 1973 for public review.

5) Define the path to citizenship as by marriage to Bahamians only after 10 successful years of said marriage retroactive post Independence July 10, 1973.

6) Impose a fine of $10,000.00 and or 2 years imprisonment for any individual found guilty of aiding, abetting, harboring, smuggling, hiring or otherwise dealing with illegal migrants of Haitian and or any nationality.

7) Revoke the citizenship, regularization, residency and or work permits of any naturalized or regularized person found guilty of aiding, abetting, harboring, smuggling, hiring or otherwise dealing with illegal migrants of Haitian and or any nationality, and deport and blacklist such individuals’ from reentry to the Bahamas.

8) Any individual found guilty of hiring illegal Haitian migrants in addition to imposed finds shall be held responsible for all repatriation cost.

9) All funds obtained by any illegal migrant(s) thru unlawful gainful employment shall be confiscated prior to deportation.

10) Revoke all applications for name changes which facilitates identity theft of indigenous Bahamian names.

These measures are designed as disincentives to, and the denationalization of Haitian nationals as they have proved beyond doubt to be the single major threat to national security, the very existence of Bahamians as an indigenous people, our way of life, and sovereignty of the Bahamas.

After four decades of procrastination by all administrations without remedy, it is necessary that WE THE PEOPLE demand far-reaching measures are implemented for our own self-preservation as a people.

Naturally, we expect some backlash and negative feedback from various international and human rights quarters. However, WE THE PEOPLE OF THE BAHAMAS, stand firmly in our belief that inaction short of the above would certainly lead to the self-inflicted genocide of our people.

We know and understand you are under pressure from various sides on this very controversial issue. Please rest assured that WE THE PEOPLE OF THE BAHAMAS stand 100% firmly behind you, and look forward to demonstrating our support with your compliance.

Sign the petition

Peter Nygard’s proposed expansion plans at Simms Point/Nygard Cay...

Flawed Process For Nygard Plans

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

IN the face of mounting legal pressure and international attention, the government has been forced to extend its public consultation process on Peter Nygard’s proposed expansion plans at Simms Point/Nygard Cay for a further 21 days. In an embarrassing climbdown it has also had to admit to confusion and flaws in the process thus far.

Letters obtained by The Tribune yesterday, signed by Director of Physical Planning Michael Major and sent to Save The Bays (STB), the environmental group leading the opposition to the development, show that the consultation period has officially been extended because of the department’s failure to obtain certain information about Mr Nygard’s plans and its failure to disclose certain documents.

Concerned residents had requested the information and documents in order to make meaningful representations with respect to Mr Nygard’s applications.

Lawsuits were filed this week against the government by STB and wealthy Lyford Cay property owners, including Baha Mar Chairman Sarkis Izmirlian and retired British actor Sir Sean Connery, seeking a judicial review of the process.

On June 18, the government announced the start of the initial 21-day public consultation period that ended on Wednesday with respect to Mr Nygard’s applications for Crown land and approvals for building, dredging and other types of development in the surrounding seabed.  

Mr Major noted in a letter dated July 6 that despite the start of the public consultation process, his department has not received applications from Mr Nygard with respect to certain “future buildings” in his site plan.

He said that Mr Nygard’s “set of architectural plans displayed are incomplete and insufficient to secure a building permit.”

He added: “The plans displayed represent all of the plans submitted with the application. It is customary that more plans are required by the relevant agencies as the application progresses through the approval process.”

Mr Major also said that copies of certain relevant documents cannot be given to residents and apologised for not having a study that considers the sustainability of Mr Nygard’s work electronically available for inspection.

“While it is not possible to provide copies of the documents for each request, three printed copies of each document are available to accommodate simultaneous inspections,” the letter said. “The department will continue to make available for public inspections, all of the information submitted in respect to planning applications during the consultation period.”

“We apologise for the unavailability of the electronic version of the study referenced ... and instead another relevant study was posted on the BEST Commission’s web page.”

“In light of the initial difficulties in obtaining the digital information, consideration will be given for a reasonable extension to the consultation period.”

That extension was granted in a letter dated July 9. 

Earlier this week, American television personality Nancy Grace and former US Treasury Secretary Nicholas Brady were among the 103 people who jointly sued the government while expressing concerns about environmental degradation and alleged unauthorised activities by Mr Nygard that they believe have already taken place in the area.

The government’s consultation exercise has been labelled a “farce” by some critics who believe that the government might try to sanction Mr Nygard’s plans as a favour for his financial support to the Progressive Liberal Party (PLP) over the years.

The Tribune understands that STB will be before the Supreme Court on Monday to continue to press the case for judicial review. 

July 11, 2014

Tribune 242

The first confirmed case of Chikungunya virus in The Bahamas

MOH Officials Move To Fight Chikungunya Virus

By Jones Bahamas:

In light of the country’s first reported case of the Chikungunya virus, the Ministry of Health (MOH) has teamed up with the Department of Environmental Health in an attempt to combat the further spread of the disease.

Director at the Department of Public Health Dr. Pearl McMillan told the Bahama Journal Monday that both the MOH and Environmental Health officials have been taking initiatives to stop the virus from progressing throughout the country.

“We are working with our partners in Environmental Health, and they are also promoting that individuals in communities do the necessary vigilance as it relates to preventing the proliferation of the mosquito,” she said.  “We do not want to have a situation where we have more cases.  Environmental Health has already started doing the spraying and they also do the water treatments.  That has been ongoing.

“We work with them regularly; we do not wait until we have a case.  Once we have a suspect then we inform them and then they go out and do the necessary activities that will assist in preventing the breeding of mosquitoes.”

The MOH, in a press release issued over the weekend, documented the first confirmed case of Chikungunya in The Bahamas.

“The case occurred in an adult visitor who travelled to The Bahamas from the Dominican Republic on June 29, 2014,” the report read.  “His symptoms reportedly began the day before travel to The Bahamas.

“He was seen at the Princess Margaret Hospital on June 30, 2014 and was subsequently tested.  A confirmed positive test was received on July 4, 2014.”

The report went on to say that the patient had been treated and was recovering well.

Dr. McMillan confirmed that there has only been one confirmed case to date, meaning that the presence of the disease does not mean that there is an outbreak.  She did say that in light of a startling new revelation regarding the disease’s carrier, the Aedes Aegypti mosquito, persons definitely need to take preventative measures.

“This mosquito lives around the house,” she said.  “It’s not like other types of mosquitoes that you have to go out into the bushes and into the wild.  This mosquito is a house bound mosquito.  So we urge individuals and communities to work with us as we seek to prevent having any additional cases.  This one case was imported, and we are hoping that we have zero additional cases.

Chikungunya was first reported in the Caribbean on December 6, 2013.  To date, 22 countries in the Caribbean have reported confirmed cases.

July 08, 2014

Jones Bahamas

Peter Nygard and the Proposed Redevelopment of Nygard Cay goes Global

Nygard battle goes international

ALISON LOWE
Guardian Business Editor
alison@nasguard.com

The battle between environmentalists and Canadian fashion mogul Peter Nygard over whether he should have the right to receive permits for redevelopment and land has gone international, ahead of the close of a public consultation period on the matter in The Bahamas.

The Guardian of London, and Der Spiegel of Germany, both reported this weekend on the case of Nygard's controversial application currently being considered by the government for permission to expand his property and to obtain leases for land.

Meanwhile, Robert F. Kennedy, Jr., president of a 200-group strong global marine environmental movement, the Waterkeeper Alliance, also called on the government of The Bahamas to reject the application by Nygard, citing concerns over expected environmental implications.

Back in Nassau, Fred Smith, attorney and director for environmental group Save the Bays, alleged yesterday that the government has yet to release pertinent information relating to the applications made by Nygard; Smith claims the information was promised by Director of Physical Planning Michael Major.

While Smith had initially applauded the government for holding a consultation on the permit applications as a new step toward much-needed transparency and accountability, the attorney said that without such details the consultation is pointless. Information sought includes a government-commissioned report of 2014, which a notice announcing the public consultation on the applications said would "guide" the government in its deliberations.

In its report, The Guardian called the dispute over whether Nygard should be granted the right to rebuild parts of his property and obtain a lease of certain areas of seabed around his property, a "battle to stop fashion tycoon building on Bond beach" - a reference to the appearance of Clifton Bay in the 1967 James Bond movie "You Only Live Twice”. The article pointed out campaigners’ concerns that it could lead to "environmental calamity".

The government launched a 21-day consultation period over the permit applications, which ends on Tuesday. Opponents have urged the public to react during the consultation period or face seeing environmental damage done to the area.

"The beaches and azure waters of Clifton Bay in The Bahamas are at the center of a real-life drama that would surely compete with anything Hollywood could invent," said The Guardian.

Robert F. Kennedy Jr., in a statement released over the weekend on the issue of Nygard's application by the Waterkeeper Alliance, said that the application submitted by Nygard should be rejected.

"The people of The Bahamas are taking action. More than 5,000 have signed a petition calling on Prime Minister Christie and the Bahamian government to enforce the law and protect Crown land and sea beds at Nygard Cay, and we add our voice of support to this cause,” he said.

Kennedy promised to "keep a spotlight on the Bahamian government and...mobilize concerned citizens in The Bahamas and across the globe to take action until Bahamian officials are transparent with the public and demonstrate a commitment to the preservation of these precious and fragile environments."

The Guardian article notes that Nygard's spokesman did not respond to questions on the matter but added that the businessman has previously accused the Save the Bays campaign of being a tool of a neighbor, Louis Bacon, a billionaire hedge fund manager with whom he has been in a land dispute - a claim the campaign has denied.

The Save the Bays campaign confirmed that Bacon was a large donor, but insisted that it was a coalition of concerned residents and environmentalists, added the newspaper.

Smith has urged members of the public to engage in the consultation process by submitting opinions or concerns on the proposed redevelopment of Nygard Cay to the director of physical planning. The public must send a letter or fax in order to do so.

In an interview with Guardian Business yesterday, Smith added: "The environment, as the rest of the world sees, is important and thankfully if the world is now paying attention to The Bahamas, our own politicians might finally begin to respect our own home."

Save the Bays has urged all members of the public to attend tonight’s town meeting on the future of Clifton Bay. The meeting is scheduled for 7:30 p.m. at the BCPOU Hall on Farrington Road.

A message sent to a spokesperson for Peter Nygard seeking comment was not returned up to press time.

July 07, 2014

thenassauguardian

The Bahamas trade deficit declines

Trade Deficit Narrows 9.7%

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas experienced a 9.7 per cent drop in its trade deficit to $2.554 billion in 2013, largely due to an almost-$300 million fall in its import bill.

The Department of Statistics’ 2013 Annual Trade Data report, which covers just the Bahamas’ merchandise account or trade in goods, noted that total imports fell year-over-year by 8 per cent or $291.6 million, dropping from $3.658 billion to $3.366 billion.

While it is unclear whether the import drop is the start of a trend, and if it will be easier for the capital account (FDI and tourism earnings) surplus to finance the merchandise deficit, the narrowing was certainly not caused by any increase in Bahamian exports.

These, too, also fell in 2013, dropping from $828.7 million in 2012 to $811.7 million - a decline of $17 million or 2 per cent.

“The 2013 balance of trade (total exports minus total imports) continued to result in a deficit,” the Department of Statistics noted. “However, between 2012 and 2013, there was a noticeable decrease of some 9.7 per cent in the trade deficit, resulting in a net trade balance of $2.6 billion in 2013 compared to $2.8 billion in 2012.”

The $2.554 billion trade deficit incurred in 2013 was the lowest since 2009, when it fell to $2.114 billion at the recession’s peak.

“Data on merchandise trade for the year 2013 show that the value of commodities imported into the Bahamas totalled nearly $3.4 billion, resulting in a moderate decrease of 8 per cent below 2012’s total of $3.6 billion,” the Department of Statistics.

Mineral fuels, likely including gasoline and other oil-based products were the largest import category at $726.9 million or 21.6 per cent of the total, with machinery and transport next at $657.4 million or 19.5 per cent of the total.

Diesel fuel imports were worth $328.7 million in 2013, with unleaded auto gasoline and jet fuel accounting for $161.3 million and $46.9 million, respectively. Other fuel oils were worth $124.1 million.

Manufactured goods totalled $460.3 million for a 13.7 per cent of the Bahamas’ total import bill, with fresh meats, fruits, vegetables and processed foods coming to $466.5 million or 13.9 per cent.

On the exports front, Polymers International’s polystyrene products at $174.7 million, ‘other compounds’ at $61.6 million, lobster at $84.4 million accounted for 88 per cent of exports.

The US remained the Bahamas’ main trading partner, supplying $2.75 billion or 81.8 per cent of total imports. Puerto Rico and Trinidad & Tobago accounted for $249.6 million and $81.9 million worth of imports respectively.

The US also accounted for the lion’s share of Bahamian exports at $678.8 million, taking 83.6 per cent of the total.

July 03, 2014

Tribune 242

The Progressive Liberal Party (PLP) government simply does not care about the rights of women

The PLP has Failed to Protect the Rights of Women

Democratic National Alliance - Press Release:

History has shown that Bahamian women continue to make up a significant block of this country’ voting electorate; however this Christie led administration – whose victory at the polls was due in large part to the high voter turnout among women – has proven itself unworthy of that vote of confidence.

This PLP government simply does not care about the rights of women. Over the course of his term in office thus far, Mr. Christie has paid only lip service to the idea of female empowerment and equality while allowing those under his direction to further trample on the freedoms of Bahamian women across this great country; women who continue to contribute in meaningful ways to the development of our communities, and our democracy.

The PLP campaigned and won on the promise of a referendum which would finally address constitutional inequalities against women; however, more than 50 years since the women’s suffrage movement, months after receiving the recommendations of the constitutional commission, and more than two years in office, this government has not seen fit to make good on this promise.

Prime Minister Perry Christie has instead postponed the date of the planned referendum twice and his administration has, during this time, failed to undertake the promised educational campaign intended to make the public more aware of the key points at the heart of this very important issue.

While the Democratic National Alliance is saddened by this reality, we are not at all surprised. Since taking office, this administration has failed to meet its own deadlines on issues of national importance. As with issues such as Value Added Tax, National Health Insurance, the Freedom of Information Act, the implementation of the Sexual Offender’s Registry and countless others, the government has faltered consistently, failing not only to meet its own self-imposed deadlines, but also in providing the public with the necessary updates required to inspire confidence in the electoral process.

The government’s amateurish handling of the gaming referendum and the subsequent decision to go against the will of the people in that regard is additional proof of this government’s ineptitude and lack of focus. The decision to regulate the industry after a resounding “NO” at the polls has only further undermined the public’s faith in our country’s still developing democracy and has undoubtedly cast a shadow of doubt over any future referendums. How can the electorate be sure that the government will honor the outcome of the vote? How can Bahamian women trust that the rights they vote to protect will not be overturned at the whim of an indecisive leader?

This PLP government has failed the women of the Bahamas. They have denied women across the country basic rights and have compromised the process by which those rights can be achieved in the future. Sadly, on the issue of gender inequality this Christie led government has shown itself, ill-equipped and unwilling to protect future generations of Bahamian women.

July 01, 2014

Branville McCartney
DNA Leader - Facebook

Shanendon Cartwright on Politics and good public policy in The Bahamas

Is good public policy good politics? Absolutely!

The Commonwealth of The Bahamas has reached a pivotal and significant crossroad in our national development. Bahamians through their increased level of frustration and disenchantment with government have placed the impact and relevance of political leadership in the spotlight.

While there is always a natural tendency to focus on particular personalities, Bahamians are asking a much broader question of whether or not our politics is serving us well. They feel that governments have not, in some cases, functioned at their optimum; and this observation is in vivid contrast to the many political campaigns that are constantly ambitious, aggressive, accomplished to a degree, deliberate and simply get things done.

Their discontent and dissatisfaction is anchored by a fundamental and ever-present irony. We live in a time when answers to our prevailing questions, and possible solutions to our most challenging problems, are literally at our finger tips by way of our smartphones or the click of a mouse. Yet, there seems, and “seems” being the operative word here, to be a limited capacity on behalf of our governments at times to efficiently grapple with many of our country’s short- and long-term problems.

If I may, however, offer an alternate perspective. The Commonwealth of The Bahamas is a dynamic country with some of the best minds in the world. We are a country with a small population but produce people with extraordinary gifts, talents and supreme intelligence that light up the world stage at a higher rate than many countries with 10 times the number of people. That’s why it is my absolute belief and contention that the Commonwealth of The Bahamas is the greatest nation on Earth.

We have the answers to our problems. In my humble view, progress on particular issues is slow because in many cases governments have retreated to the corner of what they believe to be safe politics rather than standing firm on bold transformative policies. They are obsessed with the question, “Is good public policy, good politics?” I say absolutely!

Why is it necessary to discuss, deliberate and dissect this? Well, it’s obvious to the Bahamian people if you listen to them as I do that solutions rarely make it to their destination because of the political gauntlet and the perpetual campaigning that goes on. Bahamians see continuous politicking and not enough governing. Now don’t get me wrong we love ourselves some politics in The Bahamas. However, dipped in to our enthusiasm for the rhetoric and political jostling lies an entrenched and burning hope and real expectation that governing will start and things will get better in the country we love.

Politics and policy

There is a dance that is always happening between politics and policy – a waltz if you will. Politics is the mechanism and way in which we the Bahamian people choose our elected officials; the way in which politicians vie for acceptance from the Bahamian people. Policy, on the other hand, is the medium through which the elected officials should be advancing real change and transformation for the empowerment of the Bahamian people and the development of the Commonwealth of The Bahamas. Policy is where real, legitimate, courageous, life-changing, inspiring leadership stakes its claim. It is where history will herald contributions and determine legacies. Put another way: You have won an election? Now truly lead, govern and make things better in The Bahamas for future generations.

Political parties morph into governing parties once elected and seem to take the posture sometimes that the voter’s initial discomfort or anxiety with a particular policy proposal is sufficient to stop it in its tracks. This position, although I believe unintentional, discredits and insults the intelligence and thoughtfulness of the Bahamian people who are more than capable of sifting and navigating through proposed policy and project debates that are supposedly created to benefit them and the country.

Herein, in my estimation, lies an unescapable truth. While I have attempted to make a distinction between politics and policy in their purpose, there is an unavoidable seam at which they do meet; hence my argument. In most cases where the policy may be good, it isn’t the policy that the Bahamian public reject. It is the lackluster collection of weak explanations, half-truths, poor communication and failure to adequately engage the Bahamian people as a legislative partner. They fail to competently make the Bahamian people aware of how a proposed policy benefits them. After all, aren’t we supposed to know and feel like it will be good for us? Isn’t that the purpose of public policy?

Good policy

Amazingly when good policy has far-reaching and long-term impact, members of the electorate are prepared to subject themselves to some temporary discomfort and uneasiness. It’s similar and analogous to going to the doctor for a vaccination. The short-term experience of getting a needle is not necessarily desirable to many, but the long-term benefits of being immunized are well known. Yes, I do get and can concede that it’s natural for Bahamians to be less skeptical about what their doctors say compared to politician. But, the principle is the still the same. Adequately explain and convince the Bahamian people how they and the country will reap the rewards of the policy and they will embrace it despite the imperfections. When good policy doesn’t resonate, it’s either bad policy or there is a lack of persuasion.

Let me add to those who are just totally pessimistic about politics. What I’m highlighting is persuasion based on what is authentic and true about the specific policy, its merits and shortfalls. Conveying half-truths, lies and using smoke and mirrors about the policy do not amount to persuasion; that’s deception and manipulation and Bahamians will make you pay a political price for such a deed.

It is truly fascinating to me and many Bahamians that a sentiment and conviction exist on behalf of some on the political frontline, both politician and political technocrats, that suggesting certain policy proposals may lead to a political death trap. Here’s the irony in such thinking. Politicos pride themselves on being political geniuses – strategists of the highest order. They use the terms “leader” and “leadership” loosely when they should be used sparingly because a major part of political prowess, political leadership, if you will, and political competency is the ability to sincerely connect with and to articulate to the people what you are proposing in order to convince them that the measure is good for all and the country. There is nothing admirable about shrinking from tough decisions masquerading as political savvy and shrewd strategy. A weak, timid or fair-weather stance will not lead to real progress in the Commonwealth of The Bahamas; nor will it translate into meaningful change in the lives of Bahamians.

The greatest leaders across this God-given Earth have been persons, more often than not, who have lives that encompass vision, decisiveness, resolve, character, strength, selflessness and inspiration. The country we love – the Commonwealth of The Bahamas – will not flourish on easy decision making. Greater expectations demand greater responsibility from us as citizens; but also, especially our leaders. We need good public policies that will strengthen our economy and upgrade our fiscal standing so that Bahamians can enjoy real economic empowerment. We need good policies that will start to alleviate the debilitating scourge of crime and its elements. We need good policies that will ensure that our children have the best education in the world so that they can determine a better future for themselves. We need good policies that will make us a healthier nation regardless of socio-economic statuses. We need good policies that will better equip us to create even more world-class athletes and sporting programs. Most of all, we need good public policies to secure our Bahamian cultural identity and export it to the world.

Bahamians everywhere are demanding real change. They want to be inspired by a vision of a country that is only limited by what we can imagine. Bahamians want a Bahamas where the Bahamian is king. Bahamians have always been prepared to give, to sacrifice for the good of their country.

We are a giving people. It’s incumbent upon our leaders to advocate for and fight on behalf of the Bahamian people by presenting and communicating good public policy for their consideration that is sound, substantive, impactful, forward thinking and that cradles the hope and the aspirations of all Bahamians. There is no doubt in my mind that good public policy can transform, enrich and uplift the lives of Bahamians everywhere. And when the time is appropriate they will register their trust and approval at the ballot box. Is good public policy good politics? Absolutely!

• Shanendon E. Cartwright is a marketing and hospitality professional and the founder and facilitator of Vision 21 – an educational, motivational and interactive lecture series on leadership.

June 25, 2014

thenassauguardian

Haitian Children Born in The Bahamas Should Get Bahamian Citizenship

Key: Haitian Descendents Born In Bahamas Should Get Citizenship

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

PEOPLE born in The Bahamas of Haitian descent are Bahamians and should have citizenship, according to Central and South Abaco MP Edison Key.

In an interview with The Tribune, Mr Key slammed successive governments for failing to address the long-standing immigration issue that has led to the marginalisation of a large group of people as “scapegoats of labour”.

He called on the government to move quickly and humanely to address the growing problem that he feels will soon become unmanageable.

Mr Key said: “These people, particularly the people that live in the Mud and Pigeon Peas, that’s my constituency. These are people that have children born there now who are doctors, lawyers, defense force officers, police, nurses.”

“They make a contribution and I blame all the governments for the situation they have to live in. They are human just like me and you and everybody else.

“There should be a more humane approach,” he said, “you’re born in a country, you don’t have no passport, and when you’re 18 you can only apply and they don’t have to give you any consideration for citizenship. But yet you are Bahamian if you look at it by your birth certificate.”

Earlier this year, an official from the Haitian Embassy urged the government to address practices regarding the process of regularising persons of Haitian descent.

Wallenson Nobert, first secretary of Legal Affairs at the Haitian Embassy, said the “real problem” faced by the Haitian-Bahamian community in the Bahamas stems from the absence of a clear legal framework to process migrants.

In response to a panel discussion hosted by the College of the Bahamas on the complex issue of statelessness within the Bahamian context, Mr Nobert said the use of the term “stateless” to describe unregularised persons of Haitian descent was “inappropriate” given Haiti’s citizenship laws.

Instead, he said, there was an inherent “hypocrisy” in the Bahamas’ handling of citizenship that allowed for a peculiar stratification of rights, adding “either you’re a part of a country, or you’re not”.

Outside the House of Assembly on Wednesday, Mr Key said: “I think the government should look at these people and sort this situation out. Let’s say it’s 60,000 foreign women in this country in this same situation and they each have five children – that’s 300,000 people. One day, it’s going to catch up with us. We need to deal with this situation now and don’t let it get any further.”

Mr Key referred to the recent spate of fires that have negatively affected shanty town populations in Abaco.

Last year, a mother and her year-old son were killed in a fire in the Pigeon Pea area in Marsh Harbour. More than 80 homes were burned to the ground on that occasion, leaving more than 500 people homeless.

Following the December 31 fire, Deputy Prime Minister Philip “Brave” Davis told Abaco residents the government would do all that it could to ensure a situation like that did not happen again, adding that members of such communities must make certain their homes are up to standard.

Last month in another shanty town on the island, more than 70 homes were wiped out in a blaze that consumed the Sand Banks area, and which police believe was arson.

Mr Key said consideration should also be given to regularise the parents of Bahamas-born children, who have worked in the country for more than 40 years.

When asked whether or not he had a solution to the issue, Mr Key said: “I don’t really know, but I know if I was in charge of the country or Immigration I would sort this out, especially with the children, but not only that, the parents. Some of them have been here 40, 50 years. 

He added: “They’ve worked hard, they’ve helped to build every building, every house, every road. Why are we using these people that have made such a contribution and then at the end of the day say we don’t need you.”

According to Foreign Affairs Minister Fred Mitchell, senior Bahamian and Haitian government officials are in bilateral talks this week covering trade, technical co-operation and illegal migration. Negotiations in Nassau were said to have been fruitful in advancing the draft texts to be signed this summer.

June 20, 2014

Tribune 242

The one thing that is clear to me ...is that a government has five years to govern ...if the prime minister does not call early elections

The government must govern

Having watched the budget debate over the past few weeks, I was encouraged by the fact that there was some discussion which created dialogue not only amongst the parliamentarians, but also the citizenry. It was interesting to see issues such as the proposed web shop gaming regulation, value-added tax, concerns about transparency in the budget presentation, freedom of information, crime, etc., thoroughly ventilated by government and opposition parliamentarians.

Contrary to what some may think, it is healthy for parliamentarians to constructively comment on matters that may appear contentious even if the view put forward is divergent from the political party they support. What were even more interesting were the political innuendos that were generated from the rousing discourse.

I am extremely pleased as a Bahamian to see that our democracy is alive and well. We are evolving as a young, independent country to a point where the next generation is being vocal in all aspects of society. For the generations born post-independence, it should be recognized that protesting, arguments and divergent views did not just come into existence in the past few years. It was because of a generation of young people in the 1950s that was the catalyst for independence in 1973. The key issue here is that when we understand our history, the adage, “the more things change, the more they remain the same”, is so true in our little Bahamas.

Like any other developing country, The Bahamas has its fair share of challenges. It also has an electorate that expects instant solutions to all the problems. Quite frankly that forms the basis of a potentially disappointed electorate that wants things to happen, and to happen right now. Surely, that is a recipe for disaster as there has to be a methodical and deliberate approach to governance that affects solutions that will be meaningful and truly beneficial.

This is not just a theoretical view, but one grounded in reality. Regardless of what each of us thinks should be done with respect to every government decision that is made, it is our collective efforts that elected the government to do the job that they are doing and it is our responsibility to make our views known to them in a respectable and articulate manner.

We cannot justly criticize the government for decisions that are being made which will ultimately result in a better way forward for us, simply because we lack the intellectual capacity to suggest alternatives that are better than the decisions they are making.

The level of ignorance that some have with regard to good governance and informed decision making reaches a point that is higher than the all the dung the wild donkeys of Inagua can produce. The electorate has an obligation to make rational and reasonable recommendations to its members of Parliament.

It cannot be right that we elect our members of Parliament to make decisions on our behalf, criticize them, yet offer no logical set of solutions for consideration that is equal to or better than the positions they are taking.

Shared responsibility is what can occur when the citizens and the elected officials work to address the challenges and problems of a society.

While we may argue about the manner and form in which policies are implemented, the substance of the matter is equally important. Isn’t it ironic that the electorate, which enjoys the nice roads of New Providence today, is the same electorate that criticized the former administration and resoundingly voted them out of office in the 2012 elections?

Likewise the same electorate voted overwhelmingly in support of the current administration, yet many are quick to condemn the government for decisions it has made.

The one thing that is clear to me is that a government has five years to govern if the prime minister does not call early elections. If it is the case that the government has five years to govern, the electorate in all fairness must give the government a chance to govern so as to lawfully fulfill the promises as set out in their commitment on election day.

To take a critical approach before the government is able to achieve its objectives is not only illogical, but suggests that the electorate does not expect the government to fulfill its promises or it believes the government is disingenuous. Either way, it is not helpful for good governance. It should be clear that I am not advocating that we not have critical reviews and/or thoughts over decisions made or contemplated by the government. I am suggesting that we ought to be forward thinking and frank in our expectations and support of a government to govern.

In The Bahamas it is neither rational nor necessary to complain about the government when citizens do not advocate and speak to their members of Parliament. What part are you going to play in the struggles of our country? How are you going to assist the government to make a difference? If it is that you are of the view that just being opposite to every policy decision or administrative action will make for a better democracy, then that may be a role citizens may wish to take on. However, if you want to make a lasting impact by affecting policy today, ensure you communicate with members of Parliament. Citizen action is an essential component of a robust democracy.

The government was elected by the people with a clear and focused agenda. The budget debate always gives citizens and residents an opportunity to critically analyze the direction that the government intends for the country. Are there always areas of focus which can be better aligned to the needs of the country? Will the decisions taken be in our best interest? The answers to these questions are arguably subjective. Objectively, this is a little past the second year of the current administration and in spite of the various views, they must govern.

• John Carey served as a member of Parliament from 2002 to 2007.

June 20, 2014

thenassauguardian

Bahamas brain drain and stagnating economic growth

Bahamas Losing 2/3 Of 'Best And Brightest'

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Almost two-thirds of college and university-educated Bahamians have moved abroad to seek jobs in developed countries, costing this nation a sum equivalent to 4.4 per cent of annual gross domestic product (GDP).

The so-called ‘brain drain’ was highlighted in a newly-released Inter-American Development Bank (IDB) report, which noted that 61 per cent of tertiary-educated Bahamians had left this nation for jobs in Organisation for Economic Co-Operation and Development (OECD) member countries.

The study, ‘Is there a Caribbean Sclerosis’, which attempts to determine why economic growth in the Bahamas and five other regional nations has been stagnating, effectively suggests this nation is losing its ‘best and brightest’ minds to other economies.

This, in turn, has major implications for the productivity, innovation and creativity of Bahamian firms and the wider economy, all areas where it is suggested this nation is not as competitive as it might be.

The IDB report’s authors, Inder Ruprah, Karl Melgarejo, and Ricardo Sierra, summed it up thus: “The Caribbean countries have lost more than 70 per cent of their labour force with more than 12 years of schooling through emigration.

“This is worrisome because one of the few non-controversial stylised facts in economic growth literature is the positive contribution of education to economic growth. Thus, migration affects the Caribbean countries’ ability to generate economic growth and jobs.”

The IDB study pegs the combined impact of this ‘brain drain’, plus the money spent on these Bahamians’ education, at 4.4 per cent of GDP. With Bahamian GDP currently estimated at around $8 billion, the ‘dollar value’ of that 4.4 per cent is around $350 million.

The Bahamas, though, is far from alone in the ‘brain drain’ problem. And, in comparison to regional peers, it is among those that suffers the least loss, only Surinam (at 48 per cent) losing fewer of its tertiary-educated workers.

In contrast, Jamaica and Guyana both see more than 85 per cent of their college/university graduates migrate abroad for work. And the Bahamas also suffers the least loss in terms of GDP impact and the number of secondary school graduates (10 per cent) who head abroad seeking work.

The IDB study gives no explanation as to why 61 per cent of Bahamian tertiary graduates head abroad, although the likely reasons include the fact many of them stay overseas when their college degrees are completed; the narrowness of the Bahamian economy and opportunities at home; and a lack of information about openings in the Bahamas.

Still, the findings have worrying implications for the Bahamas, as they indicate an entire generation of entrepreneurs and top-level managers may be heading abroad, never to return. And with Baha Mar set to create 5,000 extra jobs, and other major investment projects coming on stream, this nation needs all the top-quality labour it can get.

To reinvigorate Caribbean economies, the ID study suggested they “reorient trade in goods and services towards growing niches”, namely faster-growing countries with rapidly expanding middle classes.

Taking Brazil as an example, the authors suggested that had it been the Bahamas’ main trading partner during the 2008-2012 recession, this nation would have seen a 4.5 percentage point difference in its annual growth level.

“The average increase in annual growth during the Great Recession would have been 2.1 per cent for the Bahamas,” the IDB study said. “Over the next six years, the simulation exercise shows that the increase could reach 0.8 per cent for the Bahamas.”

The Bahamas is currently targeting Brazil for increased financial services, trade and tourism business, and the IDB study suggested that instead of an average 0.4 per cent GDP contraction in 2008-2012, this nation could have enjoyed a 1.68 per cent growth rate had the Latin American state - not the US - been its main trading partner.

And, in the same scenario for 2013-2018, the authors project that the Bahamas would enjoy a 2.88 per cent average GDP growth rate instead of 2.3 per cent. Per capita would also be slightly higher by around $200 per person.

Noting just how badly the Bahamas was impacted by the 2008 recession, the IDB study said this nation collectively lost 40 per cent of its GDP between 2008-2012, based on 2007 growth levels. Only Trinidad fared worse.

And the authors also added their voices to those expressing uncertainty over whether Baha Mar would grow or split the high-end visitor market with Atlantis come 2015.

“The total investment in Baha Mar is estimated to be about US$3.5 billion, and the hotels in the development are expected to increase the number of available hotel rooms by 2,000,” the IDB study said.

“However, being successful will require a substantial increase in the airlift to the island, plus a policy of diversification of tourist source countries such that the Baha Mar represents additional tourism rather than a diversion from the existing hotel complex, Atlantis.”

The IDB report also warned that economic growth and competitiveness in the Bahamas and wider Caribbean was being undermined by “special interest groups”, who were using “rent seeking” and other tactics to redistribute social wealth.

“By enlarging their slice of the pie (real GDP), these interest groups reduce the enlargement (economic growth) of the total pie, which in turn reduces total social gains,” the IDB study said. “This happens by influencing policy.”

Small, stable Caribbean societies such as the Bahamas fostered the creation and embedding of these “growth-retarding special interest groups”, it argued.

As a result, there is “a lower level of public trust of politicians, more unproductive rent-seeking, and a greater degree of wastefulness in government spending.

“Government officials engage in more diversion of public funds, show greater favouritism, and Caribbean businesspersons make more irregular payments and bribes. The only area where Caribbean tourism-based countries are at the same level as their [small island states]counterparts is judicial independence,” the IDB study said.

“Thus, the very feature that the Caribbean is proud of - political stability -may have created the conditions for and sustained an alliance against growth. In other words, Caribbean states are good for (some) businesspersons but not necessarily good for business.

“Thus, the difference in growth between Caribbean countries and other small economies could be due to Caribbean governments not being as good for business.”

June 16, 2014

Tribune 242

The poverty rate in The Bahamas increases

Poverty rises 3.5 percent

43,000 living below poverty line

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

Forty-three thousand people were living in poverty in The Bahamas at the time of a survey conducted in the first half of 2013, the Department of Statistics revealed yesterday.

The results of the Household Expenditure Survey showed that 12.8 percent of the population lived in poverty, an increase of 3.5 percent over the 9.3 percent of the population who lived in poverty at the time of the Living Conditions Survey in 2001.

The absolute poverty line — the minimum required for an individual to meet his or her basic needs — stands at $4,247 annually.

In 2001, the absolute poverty line stood at $2,863.

The latest survey was conducted between February and June 2013.

The results showed that Haitian nationals had the highest prevalence of poverty at 37.69 percent.

But Haitians represent 7.48 percent of the population, according to the survey.

While the rate of poverty among Bahamians stood at 11.14 percent, Bahamians represent 87.68 percent of the population.

The rate of poverty among people from the United States, United Kingdom and Canada stood at 3.36 percent.

Those nationalities represent 1.62 percent of the population.

Other nationalities in The Bahamas have a poverty rate of 3.69 percent.

Almost three quarters of the poor resided in New Providence, where the poverty rate stood at 12.68 percent.

The rate of poverty in Grand Bahama was 9.69 percent.

The survey notes the rate of poverty among the Family Islands collectively stood at 17.16 percent.

Director of Statistics Kelsie Dorsett said the downturn in the Bahamian economy in conjunction with the rate of unemployment contributed to the increase in poverty levels.

Unemployment was recorded at 16.2 percent in May 2013.

That figure dropped to 15.4 percent, according to the latest Labour Force Survey results, which were released earlier this year.

Although the rate of poverty among women was lower than men, women represented a slightly larger percentage of the poor, according to the survey.

Men represented 48.17 percent of the poor, while women represented 51.83 percent of the poor.

The survey indicated the number of households considered below the poverty line increased from 5.3 percent in 2001 to 8.7 percent in 2013, an increase of 3.4 percent.

Households headed by women, which accounted for 47 percent of all poor households, had a higher rate of poverty than households headed by men, according to the survey.

The poverty rate among households headed by men stood at 7.9 percent compared to 9.7 percent poverty rate among households headed by women.

Dorsett said the survey provides a comprehensive and accurate profile of the poor and the data is critical to the formation of policy to address the needs of the poor.

“It will also be used, I am sure you have heard Social Services talk about their conditional cash transfer program system, which they are soon to implement,” she said.

“This will guide that system, assess it and help to monitor that system.”

The release of the survey’s results comes amid national discussion over the likely impact value-added tax (VAT) will have on the poor after it is implemented on January 1, 2015.

Minister of State for Finance Michael Halkitis has said the cost of living is expected to rise by four percent.

Asked whether the poor can sustain this increase in the cost of living, Dorsett said the government has made presentations on how it expects the poor to be impacted. She did not want to comment beyond that.

Social Services Minister Melanie Griffin has said the government can “handle whatever fallout” may come from the new tax.

She said if the government finds that its efforts to protect the poor are insufficient, additional funding would be requested.

The government is in the process of implementing a new social safety net program, which is expected to streamline the assistance process.

In 2012, Griffin revealed that the number of people receiving some form of help from the government ballooned to around 10,000 people from 3,000 people in 2004.

The Department of Statistics interviewed the occupants of 2,123 households as a part of the survey.

Dorsett said her department hopes to conduct a Household Expenditure Survey every five to six years.

June 11, 2014

thenassauguardian

Premature Value-Added Tax (VAT) rate increase announced

Vat Rate Rise 'Criminal' If No Compliance

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A former Bahamas Chamber of Commerce president yesterday it was “criminal” for the Government to already be talking about increasing the 7.5 per cent Value-Added Tax (VAT) rate prior to getting the existing tax system’s compliance levels to 80 per cent.

Dionisio D’Aguilar described suggestions by John Rolle, the Ministry of Finance’s financial secretary, that the VAT rate would likely increase in “the not too distant future” as “premature”.

“It’s too early for them to say what’s going to happen or not,” he told Tribune Business. “They don’t know how much revenue it’s going to yield. It’s premature of him to say that.

“The Government has a lot of legwork to do to improve revenue collection and the enforcement of collection. It would be criminal for them to talk about increasing the rate before they’ve raised the compliance threshold. They should get it to 80 per cent before they raise the rate.”

Mr D’Aguilar added: “If we were to collect everything we were supposed to collect, we would not need the VAT, and it wouldn’t just be honest people paying the Government.

“The Government has to think about how they’re going to enforce compliance. They can’t keep increasing taxes or introducing new ones unless they collect the ones on the table.

“You talk to politicians about how to do it, and they skirt the issue all the time. They just don’t want to take tough decisions to implement collections. Talk to Perry Christie and John Rolle, and they have no answers.”

Given the problems the Government already has in collecting all the Business Licence fees, real property taxes and border taxes due to it, Mr D’Aguilar questioned how it would cope with VAT.

“People don’t pay unless you get vicious,” Mr D’Aguilar told Tribune Business. “Unless you crush that rock, I don’t think you can talk about increasing the VAT rate.”

Robert Myers, the Coalition for Responsible Taxation’s co-chair, yesterday told Tribune Business that fiscal reform had to “hold everyone’s feet to the fire”.

“Already the consumer’s feet are being held to the fire because we’re all going to be paying more in tax,” Mr Myers said, referring to the increased cost of living/reduced living standards that VAT will bring.

“Our position is that it cannot happen without government’s feet being held to the fire,” he added. “They need to be accountable for compliance and working towards a balanced Budget, and accountable for expenditure.

“That means expenditure control, as we’ve been living beyond our means. They’ve [the Government] been doing that almost year-over-year for the last 30 years.

“That’s where we’ve been very adamant that it’s got to be tough love. We don’t mind paying, but you in government have to be accountable, and have some control.”

Mr Myers agreed that much uncertainty surrounded the 2014-2015 Budget because its content was determined in the last 72 hours prior to the Prime Minister’s address.

“I think a lot of it has kind of been a bit unsure because the timing was not great,” he said. “We’re all guilty on that standpoint, but it couldn’t be helped. We moved as fast as we could.”

June 04, 2014

Tribune 242