Sunday, July 10, 2011

Prime Minister Hubert Ingraham: During the past 38 years of National independence, we have evolved from a small colony on the periphery of the British Empire into a vibrant democracy and international business centre; proud of our social and political stability and determined to broaden economic opportunities for every citizen

Our evolution into a vibrant democracy

tribune242



PRIME Minister Hubert Ingraham yesterday wished all Bahamians a happy and safe independence weekend.

In a statement issued yesterday, Mr Ingraham said: "During the past 38 years we have evolved from a small colony on the periphery of the British Empire into a vibrant democracy and international business centre, proud of our social and political stability and determined to broaden economic opportunities for every citizen.

"Our success to date is manifested in the fact that we enjoy one of the highest per capita incomes among countries in the Americas."

Nevertheless, the prime minister added, in recent years the Bahamas, like much of the rest of the world, has endured economic hardships as a result of the global economic recession.

He said: "In the face of such adversity we responded in ways reflective of the theme of this year's anniversary celebrations (38 years - United in Love and Service).

"We preserved public sector jobs, increased social assistance programmes, introduced an unemployment benefit, implemented a short term jobs programme, implemented a jobs training programme and accelerated planned infrastructure projects so as to improve service to the Bahamian people while protecting private sector jobs and serving as a catalyst for more job creation."

Mr Ingraham said these initiatives are now being expanded to include new job readiness training, a new jobs creation programme and special targeted initiatives to support small and medium size businesses.

He said these will contribute to the country's planned return to economic prosperity as the world economy and that of the Bahamas continues to recover.

The prime minister added: "Sadly, our celebration of this 38th anniversary of nationhood is marred by a continued high incidence of crime.

"While the government has mounted a multifaceted response to the problem it is increasingly important that all Bahamians unite in sending a clear message to the small minority of persons who break our social contract of good neighbourliness and who choose to live outside of the law, that we will neither tolerate nor excuse their criminal behaviour.
Reflect
"In this regard, we should all recall and reflect upon the important role that the extended family and the neighbourhood have played in our development as a people who are open and welcoming, who share easily and who believe that service is a virtue.

"As is my custom, I wish to once again use this year's Independence Day Message to thank all those who serve our people throughout the year, those in the private sector, in our churches and civic organisations, and throughout the public sector. I wish also to acknowledge and thank all those who work in our diplomatic, tourism and maritime services internationally.

"Many of them will celebrate independence at their overseas post where they pursue our country's interests internationally. I acknowledge their sacrifice and thank them for their continued service to our country.

"We will face many challenges in the year ahead: achieving economic recovery and expansion, protecting our environment from degradation in the face of climate change and sea level rise, safeguarding the supply and cost of energy and of food and winning our war on crime.

"We are a hardy people, self-reliant and bolstered by a long tradition of resourcefulness and self-reliance. So as we celebrate this 38th anniversary of our independence we recall those qualities.

"Fellow Bahamians, on this special national anniversary I extend my very best for a happy and safe Independence Day and pray God's blessings upon our nation and upon each and every one of us."

July 09, 2011

tribune242

Saturday, July 9, 2011

A modern Bahamas must adopt modern ways of conducting its affairs, and if we are to contemplate a reform of our tax structure, we ought to look at all forms of taxation and select the most efficient and the most appropriate for the benefit of all Bahamians

Tax reform needed

thenassauguardian editorial



Given the fiscal performance of the economy over the past few years and especially in the midst of the global recession, it has become increasingly clear that the days of relying on customs duties for the majority of the government’s revenue are rapidly coming to an end.
The arguments against, and the analyses of the current tax regime are as numerous as they are compelling.

The more often repeated reasons are that customs duty as a major source of government revenue has outlived its usefulness because the system is extremely insensitive to changing circumstances in the economy; it is unintentionally unfair and regressive in its impact, particularly on low-income households and at best, it distorts the orderly and efficient working of a market economy.

To which we can add, in the context of the predominantly retail and wholesale services sector of the Bahamian economy: it ties up too much of the cash flow in advance of the first sale or turnover of the imported goods.

Some have argued, rather convincingly, that consideration ought to be given to introducing a more progressive tax regime, such as the value added tax (VAT), a tax regime that is used in more than 170 countries and that is generally considered less onerous on low-income households and small businesses.

Since the tax is levied on both goods and services, it is believed that the government’s overall take could increase without having to increase the tax rate.

Indeed, there may be scope for reduction in tax rates and fees in some specific categories.
In a country such as The Bahamas, that has historically boasted of its distaste for imposing direct taxes on income, the VAT has a certain amount of appeal in the sense that it has the potential to increase the tax yield to government without having to concede its historical adherence to no tax on income.

Given the developments over the past few years with the removal of the veil of secrecy and confidentiality as regards to bank accounts in The Bahamas, and more recently the almost 30 tax information agreements (TIEA’s) signed by the government and other foreign jurisdictions, perhaps the time has come to re-examine tax reform in The Bahamas beyond the consideration of a VAT.

Consideration could be given to a broad-based or selective income tax regime which would permit the country to enter into double-taxation agreements, and by so doing obtain tax income from foreign companies operating in The Bahamas without increasing the overall tax burden to those companies since — by the double taxation treaty — the existing tax would be shared between our Public Treasury and that of the company’s home country.

Such a move could also provide added protection against the OECD’s constant threats to destabilize the so-called “tax haven” countries.

A modern Bahamas must adopt modern ways of conducting its affairs, and if we are to contemplate a reform of our tax structure, we ought to look at all forms of taxation and select the most efficient and the most appropriate for the benefit of all Bahamians.

Jul 08, 2011

thenassauguardian editorial

Friday, July 8, 2011

...the job of Immigration is to protect The Bahamas from illegal immigrants... but... The schools, the churches and the hospitals are off limits to immigration officers... so... The Bahamas' Haitian problem continues

Schools, hospitals and churches off limits to Immigration

tribune242 editorial




THIS WEEK Belinda Wilson, president of the Bahamas Union of Teachers, agreed that undocumented Haitian students should be removed from the Bahamas' school system.

While recognising that it was a delicate situation, that no child in the Bahamas can be denied an education, and that no roundup of Haitian students whose parents are illegally in this country, should be carried out on school property, Ms Wilson said teachers are willing to assist Immigration in identifying the students for their eventual removal. She was supporting an intention allegedly made by Immigration Director Jack Thompson in a speech to the New Providence Association of Public High School Principals' annual retreat. However, Mr Thompson denied a newspaper report - not a Tribune report - that quoted him as saying that the country has to "flush out" undocumented immigrants who are enrolled in the country's school system "absorbing our resources."

Mr Thompson denied any suggestion that the Immigration Department intends to target these children. He said he made it clear to the educators that education is a fundamental human right which every child is entitled to receive.

"Administrators were told," said Mr Thompson, "that students of foreign nationals attending schools should apply to the Department of Immigration for a residency permit or permit to reside." He said it was "emphasised that while students should not be denied the right of a basic education, records by the Department to Immigration are critical for future applications, or permanent residence or citizenship."

He agreed that the children's issue was a sensitive one and requires professionalism and discretion.

He said that his department, fully appreciating the sensitivity of the matter, always tries to make certain that its policies and actions are in "compliance with international law and acceptable national and international standards and practices."

This is a most difficult situation and unless handled extremely carefully can be turned into a human witch hunt. If vulnerable parents believe that they can be targeted through their school children, there will be a mass exodus from the schools, which then becomes a police problem as the children take to the bush.

The last problem will then be far greater than the first.

The situation of the children is not of easy solution. Many of these children have been born here of parents who have lived in the Bahamas for many years. No child born in the Bahamas after 1973 is automatically a Bahamian citizen. However, at the age of 18 that young person can apply for citizenship. No impediments being in the way, the grant of citizenship should be automatic.

However, a Haitian child born in the Bahamas, does have an impediment to block his automatic citizenship -- his parents are illegal residents. We don't know if over the years the Bahamas and Haitian governments have worked out another thorny problem. However, at one time Haiti did not recognise as Haitian citizens a child born in the Bahamas of Haitian parents. If this is still the position it means that the Bahamas will have many stateless children on its hands. This is indeed a major problem -- an international problem.

Many vocal Bahamians want Haitian children not only removed from the schools, but all undocumented residents -- mostly Haitians -- to be banned from the hospitals and clinics. This is a most shortsighted and dangerous position, and the fastest way to fan an epidemic that could affect us all.

Let these people fear seeking medical help for a disease that could be contagious, and rather than be arrested stay at home, they could infect their family, their neighbours, their community and eventually all of New Providence.

Doctors, for example, swear the Hippocratic Oath, which is one of the oldest binding documents in history. Its principles are still held sacred by doctors today. Doctors swear to treat the sick to the best of their ability, preserve the patient's privacy, teach the secrets of medicine to the next generation, etc. And so doctors, in practising their profession are bound to keep information about their patients secret. They are also obliged to treat them regardless of who they are or from where they come.

Mr Thompson has made it clear that the job of Immigration is to protect the Bahamas from illegal immigrants, but he stresses that it is a task that must be carried out with sensitivity.

"We never send any immigration officers to the schools," said Mr Thompson. "The schools, the church and the hospitals are off limits."

This does not remove the Haitian problem, which has to be approached in another way.

July 07, 2011

tribune242 editorial

Thursday, July 7, 2011

...the frustration many Bahamians feel with the failed immigration policy in The Bahamas regarding Haitians

Government immigration statements must be clear

thenassauguardian editorial



The Director of the Department of Immigration, Jack Thompson, on Thursday made hawkish statements on the illegal immigration problem in The Bahamas while addressing principals at an event at SuperClubs Breezes Resort.

Thompson, said The Bahamas cannot afford to have illegal immigrants in the public school system “absorbing our resources.”

“You should call me and tell me where they are living because I have to deal with them,” Thompson told the principals.

“We have to hit at the root. The root is the parent. I am not in the business of sending the children home and not the parents or sending the parents and not sending the children. We have to send them together.

“All of them must go and they must go as soon as possible because we can’t have people illegally residing and going to school and absorbing our resources. You know how the community feels about this. The communities are outraged.”

Thompson also emphasized at that event that his department does not, as a matter of policy, apprehend undocumented children at schools.

Thompson’s bold remarks reflect the frustration many Bahamians feel with the failed immigration policy in The Bahamas regarding Haitians.

Successive governments have been unable to slow the flow of people from Haiti to this country. Therefore, there are thousands of people here who were not invited.

All right-thinking people would accept that it is impossible to stop unauthorized Haitian migration to this country. Haiti is the poorest country in the Western Hemisphere and it has a population of nearly 10 million. Many Haitians want a fresh start away from the struggling republic.

Many Bahamians, however, think that successive more can be done by our leaders to reduce the flow of Haitians to The Bahamas. This segment of society is frustrated and angry. Those Bahamians want illegal shantytowns demolished and those who are here illegally to be sent home.

By echoing this frustration, however, Thompson went in tone beyond the policy position of the executive branch of government. The Free National Movement (FNM) administration has been moderate in its approach. The FNM has held to the traditional apprehension and repatriation policy, but it has also extended an olive branch, inviting Haitians who have been in the country for long periods of time to come in and be regularized.

The Nassau Guardian published Thompson’s remarks last Friday. It appears as if Thompson’s superiors in the Cabinet were not impressed. On Friday he issued a more conciliatory statement, emphasizing that Immigration will not be targeting undocumented children in schools.

If the Cabinet wants to clarify the position of the government, that’s fine. Policy and tone are dictated by Cabinet. We take issue, however, with the insinuation that this newspaper misconstrued what Thompson said Thursday.

“The Thursday’s article gives the impression that children are to be targeted by the department’s officials. The Department of Immigration regrets this insinuation and strongly condemns any such suggestion or attributions,” said Thompson’s Friday statement.

This newspaper reported what the immigration director said at a public forum. The comments the Cabinet has a problem with were uttered by its head of department. The dispute it has is not with this newspaper and it should not have statements sent out suggesting improper reporting when the issue is one between the executive branch of government and one of its senior officials.

The Friday statement should have simply said that the immigration director was excessive in tone and that the policy of the Cabinet is more moderate.

The Nassau Guardian needs not be involved with the varied policy positions held between senior civil servants and the executive branch of government.

Jul 04, 2011

thenassauguardian editorial

Wednesday, July 6, 2011

Above all the other Bahama Islands, New Providence is becoming a crime-plagued, filthy and populous township where the spiraling rate of violent crime appears to be only comparable to a pandemic for which there seems to be no wave of immunisation

Fighting rising crime in New Providence

By ADRIAN GIBSON
ajbahama@hotmail.com


I wish to say a special thank you to all of this column's faithful readers who expressed their condolences and kind regards over the last few weeks since the sudden and tragic passing of my dear uncle (Aaron Gibson), who was like a father to me. While my heart still cries and I'm gradually and sometimes emotionally writing a column to commemorate him--to be published in the coming weeks--I remain grateful for all of your support and prayers. Prior to my uncle's death, I had already taken a sabbatical from writing this column to prepare for end-of-semester examinations.
*****



AS we enter the second half of 2011, it is clear that a tsunami of death and mayhem has surged over Bahamian society. Above all the other Bahama Islands, New Providence is becoming a crime-plagued, filthy and populous township where the spiraling rate of violent crime appears to be only comparable to a pandemic for which there seems to be no wave of immunisation.

In what appears likely to be yet another record-setting year for murders, the murder count has exceeded 60 murders midway through the year and our society is gripped by ghoulish, criminal incidents that know no frontiers and have crept into nearly every nook and cranny of our country. When hearing reports of murders and robberies in outlying, relatively quiet islands such as Andros, Exuma, Long Island, Grand Bahama, Eleuthera, Abaco and even Bimini, it is clear that the high rate of violent crime has mutated across the archipelago. It is baffling to note the daily stories of death and violence that is sending shivers down the collective spine of the entire Bahamas, a once quaint society that, in the past, policed itself.

At this rate, as it relates to crime, the Bahamas will soon be on a respirator and appears to be a banana peel away from slipping into a state of disorder as the criminal element becomes more and more emboldened.

Indeed, crime is a hot button issue that has catapulted to the forefront of the national consciousness and engendered the public's fury as fellow Bahamians are falling like stunned bugs at the hands of vicious criminals and there appears to be a depreciated outlook on the value of human life. In their state of alarm, Bahamians have become more distrusting of their fellow countrymen and are swiftly arming themselves with cutlasses, shot guns, bats and taking other safety measures to ensure their security.

The rule of law, as noted by the great philosopher Aristotle, is preferable to that of any individual. British philosopher Thomas Hobbes opined, in his work Leviathan, that without the rule of law, life would be "nasty, brutish and short." The law is expected to fundamentally underpin all societies, however, the authority of the state is being openly challenged by organised and sadistic criminals.

The crime hotspot - New Providence - has been beset by house break-ins, vehicle and boat thefts, arms trafficking, migrant smuggling, highjackings, money laundering, identity theft, fraud, cyber crime, robberies, rapes, drug peddling, and heinous murders and drive-by shootings. The past year - last decade - has been one of murder and bedlam, as carnage has been left about the nation's streets and a blanket of grief is draping many families across the archipelago. As a vicious cycle of retaliatory violence is being unleashed and our nation descends into becoming an absolute madhouse, it is obvious that our moral fabric is tattered.

Locally, the notion of selective justice must be stamped out. Respect for the law has been eroded even at the highest level of government by influence peddling and deal-making. It is known that some of the country's movers and shakers fail to heed the law themselves as there is a conspicuous level of deception and transgressions by some unprincipled politicians and white collar criminals that, for the most part, go unreported.

Crime is an insidious scourge on our society that must be tackled at every level. There is a common consensus among the populace that the crime rate is too high and, for many, that capital punishment should be carried out, so it perplexes me how time-wasting committees continue to be appointed and/or are deferred to. Surely, the movers behind such committees should realise that the Bahamian people are not intellectual midgets!

Indeed, over the last few years, international attention has been drawn to the Bahamas due to the spate of tourist-related robberies. However, the police must also pay special attention to certain drug peddling taxi-drivers who, it is claimed, offer illegal substances to tourists or facilitate their drug hunts. Certainly, our economic lifeline--tourism--is in jeopardy and becoming seriously endangered. Unfortunately, the public-at-large will have to bear the price for the misconduct of social miscreants and when the country's image is tarnished by boneheads.

Some time ago, I called for a "212 day", pursuant to the Penal Code, chapter 84, section 212 of the Bahamas' statute laws. On such an occasion, throngs of police officers should be deployed on to the streets to conduct this dragnet operation. Indeed, such an operation would net thousands in fines, lead to the apprehension of wanted criminals and target those individuals who are selling food out of the back trunks of vehicles without health certificates and other documentation; apprehend those who illegally light fires and destroy government/private property; arrest persons who unlawfully affix signs on buildings or public property (e.g. utility poles); fine persons who do not have a permit from the Commissioner of Police that allows them to ply their wares or hold demonstrations; fine hawkers and those loiterers who harass persons outside of banks, at ATM depots, pharmacies or while waiting at a fast-food drive-thru; penalise those peddlers of fruits, clothes and phone cards who do not have the proper documentation; throw the book at persons who play loud music or make noises to the annoyance of others, and so on.

While enforcing the law and addressing serious crimes, petty crimes must be dealt with before they become larger criminal undertakings.

In a column published on June 21, 2008 I said:

"In fighting crime and reversing the apparent lack of reverence for authority, law enforcement officials must adopt former New York mayor Rudy Giuliani's 'broken window' approach and seriously enforce the laws across the board--without ignoring any infraction. Furthermore, its high time close circuit television (CCTV) is installed, more strategic Defence Force patrols are directed at minimizing the smuggling of illegal weapons/ammunition, that police officers are heavily deployed to those boroughs with the highest instances of crime and that police officers strengthen their relationship with certain communities and thereby better their intelligence-gathering abilities."

Today, there is evidence that some of this advice has been taken into account but there remains much room for improvement.

It is a sad fact to note that Bahamians have today resorted to living in caged enclaves, due to the social menaces that most likely cropped up out of a broken home--absentee parent--and the unrelenting pursuit of material possessions. Even more, it is troubling to note that Bahamians are seemingly becoming anesthetized to the accounts of the daily bloodbaths that are vividly broadcast on the nightly news programmes.

According to social scientist Dr Silvius Wilson, as a society "we must look at the root cause of crime".

Dr Wilson states: "Crime also stems from poverty, inequality and people's life chances, their education or lack thereof and an inability of some to rationalize. Very often, when a fight occurs for example, signals break down in their ability to reason. While it is good for the police to detect, they are only a wider approach to crime.

"We must look at the social issues and consider them in a holistic way. It is very seldom that you can point to a social issue and say that it occurred for one or two reasons. There is a complex genesis as to its occurrence. We must look at where it started, what are some of the manifestations and have a sophisticated and focused response to crime," he reported.

Instead of pontificating on petty political matters, the church could have a huge impact in the fight against violent crime. It appears that the church lacks the impetus and the spiritual wherewithal to take a hands-on lead in addressing this pressing matter. My criticism of certain church-related practices in New Providence arise as I have witnessed my grandfather (Edward Gibson), an ordained Bishop in the Church of God (Long Island), exhibit kindness and a spirituality that has been manifested in his Christian/community outreach--not the pursuit of material wealth, meddling in the affairs of the state or in the use of empty words as I've observed with many New Providence-based pastors.

After a convicted murderer is sentenced, a death warrant should immediately be read. Furthermore, all appeals should be heard within 18 months after sentencing.

Workers Party leader Rodney Moncur's determination to remain vocal about violent crime and punishment is impressive. Mr Moncur has projected himself as a fair-minded campaigner in sensitizing a seemingly desensitized populace to the travails we presently face. Mr Moncur's campaign in the public's interest is a far cry from that of certain politicians who seem too insulated and too preoccupied with themselves to be genuinely concerned for others -too indifferent to the suffering of victims.

In the Bahamas, there remains a need for more judges and support staff to alleviate the backlog of cases; a serious programme to attach electronic tracking devices to the ankles of accused offenders on bail, which was supposedly initiated but little has been heard of it since then; and a sex offender's database must be created.

As school children continue to glorify violence and sadism, it is incumbent upon parents to instil a sense of ethics and responsibility so that a new generation of anti-social criminals is not bred.

Crime has reached a point where the police/officials and the community must engage in wider dialogue and consultation to effectively confront it--it requires a national partnership. The police commissioner, Ellison Greenslade, seems to be devising strategies to disrupt criminal activities and effectively target the criminal element while impressing upon the public the urgency of their assistance in making it difficult for these scoundrels to evade detection but, more can be done if all the community stakeholders work in unison to collectively fight crime, from the home to the streets.

Indeed, there is a need for a social renaissance. It saddened me when my grandmother (Lenora Gibson), who lives on Long Island, asked me on Thursday, when I told her I felt like going for a stroll, if people still leisurely walk around in Nassau. She asked that question because she was likely thinking about the upsurge in violent crime and how walking may leave a person more exposed to perhaps becoming a victim of crime.

Frankly, it is high-time that the police are equipped with helicopters to track and chase criminals as well as conduct intelligence gathering and surveillance exercises.

The Bahamian society is a powder-keg. Maybe, just maybe, the movers and shakers at the Ministry of National Security should also go to the blocks and visit the prison to discover--first hand--what led these individuals into a life of crime while drafting a more effective plan to fight crime.

July 04, 2011


Tuesday, July 5, 2011

WikiLeaks documents: An “alarming” number of children are being born to Haitian women at Princess Margaret Hospital (PMH)

Cables: ‘Alarming’ Haitian birth rate


By CANDIA DAMES
Guardian News Editor
thenassauguardian
candia@nasguard.com


A U.S. diplomatic cable points to what many Bahamians have known for decades through anecdotal information: An “alarming” number of children are being born to Haitian women at Princess Margaret Hospital (PMH).

But the cable — which is a part of the WikiLeaks documents obtained by The Nassau Guardian weeks ago — does not say just how many babies are born annually to Haitian women at the country’s primary public hospital.

After checking the figures, Minister of Health Dr. Hubert Minnis informed The Nassau Guardian that of the approximately 5,000 babies who are born at PMH every year, about 600 are born to Haitian women.

Government officials rarely make public any information on Haitian birth rates.

In 2005, a report from the Ministry of Health highlighting the issue was made public.

That report showed that 76 or 63 percent of all babies born at the Marsh Harbour Clinic in 2003 were to Haitian mothers, while 45 or 38 percent were to Bahamian mothers.

According to that report, this was the first district in which the number of infants born to Haitians was greater than the number of infants born to Bahamians.

It was also revealed that of the 31 women who delivered at the Coopers Town Clinic in 2003, 51.6 percent were Bahamians and 48.4 percent were Haitians.

In the diplomatic cables, U.S. Embassy officials widely discuss the state of Haitians in The Bahamas.

“Many children of long-time Haitians living as Bahamian residents have become de facto stateless,” said one of the cables.

It points to a Haitian pastor who had lived in Abaco for 25 years, returning to Haiti once a year for visits.

“He told the political officer (of the embassy) that he is confident he will receive Bahamian citizenship ‘soon’, although he applied 14 years ago in 1991, and has heard little from the Department of Immigration since,” the cable said.

According to a 2006 IOM study, there are an estimated 30,000 to 60,000 Haitians in The Bahamas who "are not well integrated into Bahamian society."

The cable noted that the study found distrust of authority by the Haitian community and claims of abuse of Haitians.

There has long been discussion about the strain undocumented Haitian migrants continue to place on social services.

The issue was raised late last week when Director of Immigration Jack Thompson spoke to a group of public school principals.

Thompson called on the principals to report unregularized students who register at their institutions, saying the Department of Immigration intends to “flush out” undocumented foreign nationals enrolled in the public school system.

He said The Bahamas cannot afford to have illegal immigrants in the public school system “absorbing our resources.”

“You should call me and tell me where they are living because I have to deal with them,” Thompson told the principals.

“We have to hit at the root. The root is the parent. I am not in the business of sending the children home and not the parents or sending the parents and not sending the children. We have to send them together.”

It is understood that his comments caused concern and alarm in some quarters, including in the Haitian community.

On Friday, after the story ran, the director of immigration softened his tone on the issue, emphasizing that his department does not intend to enter schools and remove children who do not have legal status to be in the country.

Thompson told The Nassau Guardian he did not have specific numbers on how many children born to Haitian parents are enrolled in the public school system.

He said immigration and education officials were working on getting an accounting.

The numbers are believed to be significant, and many Bahamians continue to be outraged.

As reported recently by The Nassau Guardian, the Americans are of the view that the unaddressed issue of Haitian integration in The Bahamas could eventually lead to ethnic violence in this country.

“The existence of a large, dissatisfied and poorly-integrated ethnic minority is a potential risk to social and political stability in The Bahamas,” said the embassy.

One 2005 U.S. Embassy cable that focused on the Haitian communities of the Mud and Pigeon Pea in Abaco noted that while many Bahamians are upset at the unregulated Haitian settlements in The Bahamas, tensions on the ground do not run as high as the media rhetoric would suggest.

It is estimated that 10,000 residents live in those communities.

Vocal Bahamians in Abaco say that The Bahamas will be "creolized" in 10 years if the government doesn't take action, noted one of the cables.

“While some Bahamians see mass deportations as the answer, others increasingly recognize the need to encourage the assimilation of Haitians into Bahamian society,” a U.S. Embassy official wrote.

“On the other side, Haitian-Bahamians have grown increasingly frustrated at the Government of The Bahamas’ lack of responsiveness to their requests for citizenship.

“Most do not want to return to the completely foreign country of their parents, but they struggle against second class status in The Bahamas. As one young Haitian-Bahamian woman pointed out, ‘The Government of The Bahamas has to figure out how to deal with us. We're here, and we're multiplying’.”

Jul 04, 2011

thenassauguardian

Monday, July 4, 2011

Bahamas Chamber of Commerce and Employers Confederation's (BCCEC) chairman Winston Rolle says: ...any increase in pump gasoline prices could not be coming at a worse time, since it could further depress prospects for a Bahamian economic recovery

Chamber chief: Gas mark-up increase 'very concerning'

By NEIL HARTNELL
Tribune Business Editor
tribune242


The Bahamas Chamber of Commerce and Employers Confederation's (BCCEC) newly-elected chairman has described as "very concerning" the impending mark-up increases for petroleum retailers, warning that it would hit consumers and increase "the cost of doing business".

While expressing sympathy for the plight of Bahamas Petroleum Retailers Association (BPRA) members, Winston Rolle indicated to Tribune Business that any increase in pump gasoline prices could not be coming at a worse time, since it could further depress prospects for a Bahamian economic recovery.

Responding to this newspaper's Friday report on the Government agreeing to an increase in the per gallon gasoline and diesel mark-ups for petroleum retailers, Mr Rolle said this would only further increase business and consumer costs at a time - the summer - when global oil prices traditionally peaked, compounding the effects.

"That's very concerning," Mr Rolle said of the Government's decision. "While I understand the plight of the operators and their profit margins, you can appreciate the impact that is going to have on the cost of doing business. With gasoline prices increasing, costs are going to go much higher."

Apart from Bahamian consumers, who will feel the impact in their bank balances and disposable income levels, others likely to be heavily impacted are transportation-dependent businesses such as taxi drivers, jitneys, tour operators and all companies that rely on making daily deliveries - such as wholesalers.

"What most persons had hoped, and I guess the Petroleum Retailers Association had hoped, was that the Government would relax some of their tax take and give them the spread they need," Mr Rolle added, "but not impact the overall cost to the consumer."

Earl Deveaux, minister of the environment, on Thursday last week indicated that the Government had agreed to lobbying by the BPRA and Marina Operators of the Bahamas (MoB) for an increase in the fixed margins they can charge per gallon of gas and diesel sold.

No details were provided, but there were indications the increase would take effect within the next month. The change is also likely to see an increase in the existing margins, which are $0.44 per gallon of gasoline and $0.19 per gallon of diesel, rather than a percentage increase that the BPRA and MoB had pushed for.

Whether the increases are of the amount sought by the BPRA is also unclear. Another unknown is whether the wholesale margin enjoyed by the oil companies, FOCOL, Esso and Texaco, which are currently pegged at $0.33 per gallon will also be increased. Noting that "we haven't really hit the summer months yet", a time when global oil prices traditionally peaked, Mr Rolle added: "It's very concerning because you're going to have an increase through the adjustment made by the Government and, on top of that, in the coming months we'll see another increase based on the cost of oil worldwide.

"We're very sympathetic and do not want to put anyone's business in jeopardy, but the hope would have been that the retailers and government worked out some middle of the road, where no one takes a substantial loss. Right now, all of this is going to fall on the consumer."

Given that almost two-thirds of Bahamian economic activity stems from consumer spending, that is worrying in and of itself.

One business executive, speaking to Tribune Business on condition of anonymity, agreed with Mr Rolle that the move would "increase the cost of living to the consumer", describing it as "just another band aid approach".

Ultimately, the source said, without fixing the existing pricing structure this situation would eventually arise again, with BPRA members clamouring for further margin increases further down the line. Gas margins were last increased under the first FNM government, the source said, yet almost 10 years later the Bahamas was here again, and with the same arguments being made.

Gas prices were already extremely high, and the Government's decision meant they were likely to go higher on the grounds that dealers needed more money.

"You have to go back and look at this system that doesn't make sense at all," the source said. "If you don't solve the problem correctly, in a couple of years you're going to do the same thing."

The solution, the source said, was for the Government to reduce its $1.06 per gallon tax, plus 7 per cent Stamp Duty on the cost of landed fuel, something it is unlikely to do when desperate for every cent of revenue. The other issue, they added, was the rents, royalties and franchise fees levied on the BPRA and its members by the oil companies. The source identified these and the Government taxes as the major problem, together with an over-supply of service stations.

"When you look at the amount of service stations per square mile in Nassau, you've got more than in Florida. Something's got to be fundamentally wrong there," the source said, suggesting there needed to be consolidation.

"For an island 21x7, we should not have so many service stations in close proximity. That's the only way to begin to drive costs down for Bahamian consumers."

Rick Lowe, a leading executive with the Nassau Institute economic think-tank, told Tribune Business the episode showed price controls "certainly belong in the dustbin of history. The market is the market, and you can restrict it, manipulate it and put people out of business, but sooner or later reality has to come".

July 04, 2011

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