President of the Atlantic Caribbean Union Mission of Seventh-day Adventists (A.C.U.S.D.A) Dr. Leonard Johnson warned Bahamians not to gamble with their future by supporting the legalisation of the numbers business

Bahamians Warned Over Gambling


By Rogan Smith
The Bahama Journal

A leading pastor is warning Bahamians not to gamble with their future by supporting the legalisation of the numbers business.

The highly controversial issue took centre stage during the nation’s 39th Independence Day celebrations as President of the Atlantic Caribbean Union Mission of Seventh-day Adventists (A.C.U.S.D.A) Dr. Leonard Johnson did his best to sway a captive audience – both on Clifford Park and at home – not to support gambling.

The Christie administration, in fulfilling a campaign promise, has vowed to hold a referendum before the end of the year so that Bahamians can decide for themselves whether they want gambling legalised in the country.

Dr. Johnson says Bahamians should not “resort to the easy way out.”

“Let us not seek shortcuts. The ad says everyone can be a winner, but that is not so. Only in the kingdom of God everyone wins. We must not be bought because people donate millions to charity,” he told a crowd of thousands.

“The people of God must go by the word of God. We must listen to the report of God and depend on God to bless us. I say 39 years later that we must not be mere reflections of other men bought. We must be the pastors and the persons who think and act for ourselves. We cannot force you to act for God; we cannot legislate morality, but brothers and sisters we can preach, ‘thus saith the Lord.’ We can preach to the nation; we can tell people what is in the Bible. It is [then] left to us to decide.”

But, the religious community seem to be split on the issue.

On one hand the Bahamas Christian Council (BCC) says it is “diametrically opposed” to gambling, but several of its members say they are open to the idea and have touted the economic benefits.

Twenty local pastors, three of whom are BCC members, said recently that they were “sensitised” to the issue. They felt the country could benefit from the taxes.

Reverend Philip McPhee of  Mt. Calvary Baptist Church appears to be on board with legalising the practice.

Critics, however, are concerned about the social costs of gambling.

During Monday’s Ecumenical Service Dr. Johnson said there are other ways for Bahamians to make money.

“As I look at the example of Joseph I see no risk taking; I see no chance taking; I see no gambling for the success that he experienced,” he said. “There is hard work, there is discipline, there is industry, there is trust in God and a situation that seemed impossible God made it possible,” he said.

“When we place our trust in God, when we place our confidence in God it doesn’t matter how [bad] it may appear, it doesn’t matter how difficult [it may be to balance] the budget; when the people of God are trusting in God then God will stand up and bless his people and bless the nation. But, when the people turn from God and try to do it their way they cannot expect the blessings of God.”

Dr. Johnson explained that many of The Bahamas’ former leaders were opposed to gambling.

He said 39 years ago the late Carlton Francis, who served as minister of development at the time, objected to casino gambling.

“That was 39 years ago. Now, 39 years later, where are we? Carlton Francis said we are a small nation that can be easily permeated by any malicious influence that is dangerous. Furthermore he says, ‘I am saying that where we are aspiring to the disciplines of hard work and industry we are not yet off the ground.’ Thirty-nine years later are we off the ground? Are we going back? Are we moving ahead?” Dr. Johnson said.

“Mr. Francis, still speaking about casino gambling said, ‘I believe that there are alternatives. But, no one will find these alternatives so long as they can find the easy way out. Apart from the question of conscience, I don’t believe gambling is good for a growing nation.’ This is one of the founding fathers – one of the leaders who said these words in December of 1973 and [here] we are 39 years later in 2012.”

11 July, 2012

The Bahama Journal

Caribbean Blog International

...what were the salient issues facing those charged with shaping our constitution as we moved to independence ...and how were those issues reconciled?

The independence series, part 1

Consider This...

By Philip C. Galanis

Tomorrow we celebrate the 39th anniversary of Bahamian independence. The Commonwealth of The Bahamas was established by an act of the British Parliament which was passed on June 20, 1973 and took effect in the early hours of July 10, 1973, when thousands on Clifford Park witnessed for the first time the raising of the Bahamian flag after the Union Jack was lowered for the last time on this colony, ending 325 years of British rule.

This week, we begin a series of articles on The Bahamas constitution and for part one would like to Consider This... what were the salient issues facing those charged with shaping our constitution as we moved to independence, and how were those issues reconciled?

A natural progression

Bahamian independence in 1973 was a natural progression following a decade of rapid transformation, not just in The Bahamas but also in the Caribbean. In The Bahamas, the constitution twice prominently featured in the body politic, first in 1964 and then again in 1969.

The Bahamas received its first written constitution on January 7, 1964, which granted full control over its internal affairs to The Bahamas government, with the governor retaining responsibility for external defense and internal security. Cabinet government was introduced, and the upper house of the legislature, previously the Legislative Council, became the Senate. The Senate’s membership increased from 11 to 15, while the House of Assembly retained its designation and the number of elected representatives numbered 33. In 1969, the British government turned over the internal and external affairs to the Government of The Bahamas and replaced the office of premier with that of prime minister.

During this period, Caribbean countries were also obtaining independence from Great Britain. It started with Jamaica and Trinidad and Tobago in August 1962. Guyana and Barbados followed in May and November 1966, respectively. The Bahamas was next in 1973 and, by the end of that decade, Grenada, Dominica and St. Lucia had also gained their independence from Great Britain.

We can appreciate that the fervor for national independence for Caribbean (and African) countries was inextricably tethered to nationalistic and socio-political realities of the era, aided by Great Britain’s willingness to release its grip on the empire, upon which the sun was said never to set. For The Bahamas, the movement to independence was a natural progression, propelled by the “trade winds” of the time.

The independence conference in London

The general election of September 1972 was contested with the understanding that a victory for the Progressive Liberal Party (PLP) would begin the process of national independence for The Bahamas. It won and Loftus Roker was appointed to liaise with the official opposition Free National Movement (FNM) regarding matters relative to the Independence Conference before going to London.

Therefore, beginning in early December 1972, the PLP, headed by Sir Lynden Pindling, and the FNM, headed by Sir Kendal Isaacs, led a delegation to London to discuss an independence constitution with the British government.

Because The Bahamas already had the 1964 and 1969 constitutions, there was no need to start afresh so 90 percent of the issues regarding independence were agreed upon by both political parties before leaving for London.

The mood of the Bahamian delegation was upbeat and the talks were conducted in a very congenial atmosphere. Several of the delegates to the Constitutional Conference have noted that the drafting of the constitution was a moment in time where the PLP and FNM worked harmoniously, notwithstanding several philosophical points of departure.

One of the early issues discussed at the Constitutional Conference was Bahamian citizenship. The British attempted to persuade the delegation to accept the precedent that had been established by other colonies; that is, for British citizens and “belongers” living in the colonies to register at Government House, so that, at independence, they would automatically become Bahamian citizens. The Bahamian delegation unanimously objected to this, arguing instead that citizenship should not be so open-ended, and that there should be a process by which citizenship would be determined by the government. The Bahamian delegation was adamant and united, and the British relented and accepted the Bahamian position.

Another area of disagreement surrounded gender equality. The PLP proffered that full equality for women should not be enshrined in the constitution. The FNM argued the opposite view. Ultimately, the British government agreed with the PLP’s position.

There was a discussion on the issue of rustication and the freedom of movement and the right of Bahamians to leave The Bahamas. Some in the PLP expressed the concern that Bahamians might depopulate the Family Islands and were also concerned that, in the absence of a rustication provisions, the country could suffer a brain drain. This fuelled the debate about giving Bahamians the right to leave not just their native islands but the country. The British agreed with the opposition on this issue, and consequently there were no prohibitions on Bahamians’ ability to move freely within or outside The Bahamas.

With the issues fully aired and agreed, Sir Kendal Isaacs and the FNM delegates returned to The Bahamas. Some of the PLP delegates, including Sir Lynden, remained in London to finalize the terms upon which the new Bahamian constitution would be presented to the British Parliament. The delegation understood that the British Parliament would introduce and pass that all-important Bill for an Act to grant Independence to The Bahamas.

The surviving signatories of the Bahamian constitution are: Sir Arthur Foulkes, Arthur D. Hanna, Sir Orville Turnquest, Paul L. Adderley, A. Loftus Roker, George A. Smith and Rev. Philip M. Bethel. Deceased signatories included Sir Lynden Pindling, Sir Milo Butler, Sir Clement Maynard, Rev. Carlton E. Francis, Sir Kendal Isaacs, Cadwell C. Armbrister, Henry J. Bowen and Norman S. Solomon. Although there were other Bahamians present at the conference who were not part of the official delegation, these 15 signatories to the Bahamian constitution should rightly be recognized as our nation’s Founding Fathers.

Post-conference activities

After returning to The Bahamas, the government developed the country’s flag, the coat of arms and the national anthem. It is worth noting that the official opposition was not consulted on any of these matters.

After the Constitutional Conference, the government engaged in the most impressive public relations exercise ever conducted in Bahamian history. There was a massive national campaign to inform civil society and the Bahamian people about what independence meant to the country. The post-conference activities were spearheaded by George Smith, who was the parliamentary secretary in the Office of the Prime Minister and headed the Independence Secretariat.

In the early hours of July 10, 1973, the Commonwealth of The Bahamas was born.

Conclusion

There is no doubt that the men who assembled in London to frame the constitution of the Commonwealth of The Bahamas 40 years ago performed as impressively as the American Founding Fathers who assembled in Philadelphia in 1787 to craft that country’s constitution. The Bahamian delegates to the London Constitutional Conference are to be applauded for their superlative efforts in drafting a social contract which has served us these past 39 years.

In the weeks ahead, we will examine key articles of the constitution that have guided our ship of state. We will also consider some of the issues that should be addressed in amending our constitution, hopefully before we celebrate the 40th anniversary of a nation that was born on July 10, 1973.

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

Jul 09, 2012

thenassauguardian

Caribbean Blog International

Citizens for Justice President - Bishop Walter Hanchell and President of The Bahamas in Prophecy Movement - Pastor Micklyn Seymour both expressed shock and surprise over comments made by Reverend Philip McPhee ...about the contributions illegal numbers houses are making to national development

Pastor faces outrage on gambling issue

McPhee’s colleagues ‘shocked’ at recent meeting

By Royston Jones Jr.
Guardian Staff Reporter
royston@nasguard.com

Two pastors yesterday expressed outrage over comments made by Reverend Philip McPhee about the contributions illegal numbers houses are making to national development.

Citizens for Justice President Bishop Walter Hanchell and President of The Bahamas in Prophecy Movement Pastor Micklyn Seymour both expressed shock and surprise over the statements.

The men spoke to The Nassau Guardian in separate interviews.

McPhee said on Thursday that a group of about 20 prominent local pastors, including three members of the Bahamas Christian Council, had become “sensitized” to the idea of how taxes generated from a legalized numbers industry could benefit The Bahamas.

However, McPhee did not say he supported gambling.

After reading McPhee’s comments yesterday, Hanchell urged pastors to take a public stand to warn Bahamians of the “destructive” effects of gambling, which he claimed far outweigh any benefits that could come about from a regulated numbers industry.

The government has promised to hold a referendum on gambling before the end of the year.

Hanchell said, “Gambling is not something that The Bahamas should embrace. It is too destructive. We will pay for generations down the road if we legalize the illegal numbers racket.”

Seymour said he was very disappointed by McPhee’s comments.

He said the Christian community cannot afford to be divided on the issue, and he thinks McPhee was misled.

He also said he was surprised that McPhee arranged a meeting with ‘We Care’, a coalition of web shop owners. The meeting took place on Tuesday.

“I believe that [gambling] should not be promoted and I am calling on all of the Christian leaders to unite in force and speak with one voice.” Seymour said.

“I am very disappointed in the great man to be speaking and supporting that in any which way. He ought to condemn gambling.”

Seymour added that any country that has to turn to legalizing gambling to help its people is a nation in “desperation”.

On Thursday, McPhee said, “We got a very positive input of what the web companies are all about, what they are doing and how they contribute in many ways to the benefit of the country.

“A lot of us were not aware of those contributions. One web company has given over $1 million to fund various regattas and cultural events such as Junkanoo, and has sponsored many summer programs, feeding programs and clothing programs.

“A lot of these men have been very active in giving a lot to sustain other various programs. Those were articulated to the pastors which brought about a sense of sensitizing.”

While McPhee said the pastors are against gambling, he said, “The whole aspect of it is, if the country is benefiting from national insurance [contributions] from these companies and they are getting other benefits, then something needs to be done so these people are looked at as major contributors to the development of our country.”

CEO of Island Luck Sebas Bastian said on Wednesday that ‘We Care’ will invest around $1.5 million to educate Bahamians on industry related issues, and on various community-based initiatives over the next few months.

Hanchell said he was not opposed to anyone supporting the less fortunate in society but questioned whether the motive behind the contributions was to gain acceptance and influence to support legalizing gambling.

“People are being deceived by these web shop owners with their mega bucks and all they are trying to do is stay in business,” he said.

“They have made enough money on the backs of poor Bahamians and I think we should shut them down and… tell them to invest their money in something legal.”

Hanchell said he was speaking from 20 years of experience as a gambling addict who has lost hundreds of thousands of dollars.

Some people believe that legalizing and taxing marijuana has benefits, Seymour said, but he questioned whether that meant the drug should be made legal.

Jul 08, 2012

thenassauguardian

Caribbean Blog International

...several members of the Bahamas Christian Council (BCC), and a number of other prominent pastors have become “sensitized” to the idea of how taxes generated from a legalized numbers industry could benefit The Bahamas ...says Reverend Philip McPhee of Mt. Calvary Baptist Church...

Pastors ‘sensitized’ to gambling

Contributions of numbers houses highlighted

By Royston Jones Jr.
Guardian Staff Reporter
royston@nasguard.com

Despite the Bahamas Christian Council being “diametrically opposed” to gambling, several of its members, and a number of other prominent pastors have become “sensitized” to the idea of how taxes generated from a legalized numbers industry could benefit The Bahamas, Reverend Philip McPhee of Mt. Calvary Baptist Church said yesterday.

On Tuesday, McPhee organized a meeting between ‘We Care’ — a coalition of web shop owners — and a group of about 20 local pastors, including three members of the Bahamas Christian Council.

“We got a very positive input of what the web companies are all about, what they are doing and how they contribute in many ways to the benefit of the country,” McPhee told The Nassau Guardian.

“A lot of us were not aware of those contributions. One web company has given over $1 million to fund various regattas and cultural events such as Junkanoo, and has sponsored many summer programs, feeding programs and clothing programs.

“A lot of these men have been very active in giving a lot to sustain other various programs. Those were articulated to the pastors which brought about a sense of sensitizing.”

The government has promised to hold a referendum on legalizing the numbers business before the end of the year.

However, Bahamas Christian Council President Dr. Ranford Patterson said in May that if a referendum is held the council would do everything in its power to make its opposition known.

But yesterday, McPhee said the Church could not remain ‘stagnated’ on something that takes place on a daily basis, which could prove beneficial to the country.

“The purpose of the Church is to inform, alert and to keep its membership on the cutting edge of what we ought to be doing as Christians,” McPhee said.

“We stand totally against the whole philosophy of gambling but the whole aspect of it is, if the country is benefiting from national insurance [contributions] from these companies and they are getting other benefits, then something needs to be done so these people are looked at as major contributors to the development of our country.”

CEO of Island Luck, Sebas Bastian, said on Wednesday that representatives from the FML Group of Companies, Asue Draw, Island Game and Island Luck will invest around $1.5 million to educate Bahamians on industry related issues, and on various community-based initiatives over the next few months.

McPhee encouraged ‘We Care’ to meet with the other leading pastors in New Providence and on the Family Islands to make them aware of the potential benefits of a regularized industry.

“The referendum will [involve] the entire Bahamas,” he noted.  “So if the We Care group wants to be successful, they will have to meet on every island to inform all pastors, and other interested people on what their role and position is.”

Jul 06, 2012

thenassauguardian

Caribbean Blog International

Mr. Robert “Sandy” Sands, senior vice-president of external and governmental affairs at Baha Mar, says: ...while he supports regularising number houses ...he is not an advocate of Bahamians being allowed to gamble in local casinos

Bahamians ‘Not Disciplined Enough’ To Use Casinos


By SANCHESKA BROWN

Tribune Staff Reporter

sbrown@tribunemedia.net

ROBERT “Sandy” Sands, senior vice-president of external and governmental affairs at Baha Mar, said yesterday Bahamians are not “disciplined” enough to be able to gamble in casinos locally.

Mr Sands’ comments came after Prime Minister Perry Christie said that permitting Bahamians to gamble in local casinos will not be considered in the referendum on a national lottery.

Mr Sands said while he supports regularising number houses, he is not an advocate of Bahamians being allowed to gamble in casinos.

“I am a strong advocate of limited relaxation for Bahamians gambling in casinos. I believe the government should examine the opportunity for high net worth for persons who can verify their ability to sustain gambling for limited periods like over a month or something like that.

“I support gambling for persons who come on short term work permits, especially in the entertainment business. I also support gambling for persons of high net worth who have permanent residency in the country and people with second homes,” he said.

“However, I do not support opening the floodgates totally. We are not a disciplined enough community. I understand rights, but there are some rights we have to take away from individuals for their own benefit. We have to find the balance and even with the liberalization of the number houses there might be an opportunity where numbers may be able to be purchased through a window at the casino. But no I do not support Bahamians gambling in the casino.”

As it stands gambling is illegal in all forms for Bahamians and non-citizen residents of the Bahamas. However, Prime Minister Christie has promised a referendum on the legalisation of gambling and a national lottery before the year is out. He said a referendum is necessary to remove the “contradictions” that have led to gambling continuing to be illegal, yet widely practised and accepted.

Mr Christie said: “It is something that I think is very necessary to remove these enormous contradictions that exist in our country where every single Bahamian is walking around knowing that they (illegal web-shops) exist. We cannot have this system... where people are paying national insurance payments, making other institutional payments and then otherwise pretending that this activity is lawful. That cannot go on any further.”

He said he is working in the Ministry of Finance on scheduling a time for the referendum. He also said the former government “has done a lot of work on that” to the point where the former government created draft legislation.

It has been estimated that a national lottery could pump more than $190 million into the Bahamas’ economy annually.

Currently there are at least 16 independent numbers houses in New Providence alone, with another six in Grand Bahama and a few spread throughout the Family Islands.

The Bahamas Christian Council (BCC) has gone on record opposing the legalization of gambling in any form in the Bahamas.

July 06, 2012

Tribune242

Caribbean Blog International

...the theme of this year’s Independence Celebrations is - “The Bahamas: United in Love and Service” ...with emphasis to be placed on the struggles and achievements of the Bahamian woman on the 50th anniversary of the women’s suffrage movement

Celebrating independence and the Bahamian woman

By Arinthia S. Komolafe

This year The Bahamas will mark its 39th anniversary of independence.  There is no doubt that we as a people have made notable progress socially, economically, politically and culturally since July 10, 1973.

The annual Independence Celebrations Committee recently announced the theme of this year’s celebration as “The Bahamas: United in Love and Service” with emphasis to be placed on the struggles and achievements of the Bahamian woman on the 50th anniversary of the women’s suffrage movement.

The accomplishments of the Bahamian woman over the years are undeniable and significant to say the least.  Bahamian women have made and continue to make their mark in every sphere of society with recorded success in education, politics, religion, the corporate world, law enforcement, media and civic society.  However, the Bahamian woman remains a recipient of discrimination and inequality — some of which are enshrined in the supreme law of our land.

The women’s suffrage movement

Women’s suffrage refers simply to the right of women to vote and run for office.  It was a movement that embodied the struggle by women to gain the same rights as their male counterparts, particularly in politics.  It is fair to say that with a few exceptions, women around the world today have the same voting rights as men.  This no doubt constitutes considerable progress from the colonial days when voting was limited to adult males who owned property.  The flawed rationale at that time seemed to be that property owners had the strongest interest in good government and therefore were best qualified to make decisions.

A brief review of history will show that changing social conditions and the idea of equality in the early nineteenth century led to the beginning of the suffrage movement.  This period was characterized by more educated women and increased participation of women in reform movements and politics.  It was therefore only a matter of time before individuals (referred to as suffragists) began to question why women were not allowed to vote and led the drive to advance the cause for a woman’s right to vote.

The Bahamian struggle

The first petition for women’s suffrage in The Bahamas was presented in 1952 by the Great Improved, Benevolent, and Protective Order of Elks of the World under the leadership Mary Ingraham, who also served as the leader of the Bahamian women’s suffrage movement.  The Elks was an organization that possessed a membership of thousands of women throughout The Bahamas at that time and enjoyed considerable support for its cause.  The records show that during this period, even though women represented more than one half of the total Bahamian population, they were disenfranchised.

After multiple failed petitions in 1958 and 1959, victory finally came on January 10, 1960.  The governor at the time assented to an act to enable women to register and vote on July 31, 1961.  However, the act never came into force until 1962 and during the general election held in November, 1962, women voted for the first time in Bahamian history.

Discrimination against the Bahamian woman

Arguably women’s suffrage and consequently universal suffrage acted as springboards among other events to the attainment of majority rule in 1967 and independence from Great Britain in 1973.  The Bahamas Independence Order was made on June 20, 1973, laid before Parliament on June 26, 1973 and came into force on July 10, 1973.  While the document is hailed as being one of the best written constitutions, there are a few articles within the constitution that clearly discriminate against Bahamian women.

On September 18, 1979, the United Nations General Assembly adopted a Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), which is sometimes referred to as the International Bill of Rights for women.  The convention, which came into force in 1981, describes the discrimination against women as, “Any distinction, exclusion or restriction made on the basis of sex which has the effect or purpose of impairing or nullifying the recognition, enjoyment or exercise by women, irrespective of their marital status, on a basis of equality of men and women of human rights and fundamental freedoms in the political, economic, social, cultural, civil or any other field”.

The Bahamas ratified this convention on October 6, 1993, joining 186 other countries that have done so.  In ratifying the CEDAW, The Bahamas made an expressed undertaking to end discrimination against women in all forms.  However, The Bahamas has maintained reservations to three of the 30 articles of the CEDAW, and specifically Article 2(a) which embodies the principle of equality of men and women in their national constitutions or other appropriate legislation and Article 9(2) which states that women shall be granted equal rights with men with respect to the nationality of their children.

Addressing the discrepancies

The referendum held by the Free National Movement government on February 27, 2002 sought among other things to rectify the discrepancies regarding gender discrimination within the constitution.  However, more than two-thirds, or 66 percent, of some 87,961 persons voted against the proposed constitutional amendments.

On December 23, 2002, the less than one-year-old Progressive Liberal Party government led by Perry G. Christie appointed a constitutional review commission headed by Paul Adderley to propose recommendations for the amendment of the constitution.

In its preliminary report and provisional recommendations, the commission accepted the proposal to eliminate discrimination against women regarding the passage of citizenship to their children. The committee, however, expressed reservations regarding the granting of citizenship instantaneously upon marriage to non-Bahamian nationals who married Bahamians and recommended a period of five years before such grant regardless of gender.

The Christie administration from 2002 to 2007 further committed to holding a referendum on the aforesaid matters; however, 20 years later, the findings and recommendations of the committee have not been discussed or brought to a referendum.  Hence, the status quo which perpetuates discrimination against the Bahamian woman remains to date.

Celebrating the Bahamian woman

The current administration has not articulated its plans in relation to the elimination of all forms of discrimination against women in The Bahamas.  Addressing this half a century status quo will pave the way for the withdrawal of reservations to Articles 2(a) and 9(2) of CEDAW.

True celebration and appreciation of the Bahamian woman is ensuring gender equality in The Bahamas and removing any elements that make her feel like a second-class citizen and/or inferior to her male counterpart.

The women’s suffrage movement in The Bahamas formed a part of the progressive era.  Our ancestors saw the need to be progressive minded to their benefit, but more importantly for the benefit of generations to come.

While we note the progress made in our country regarding women, there is much ground to be covered.  Meanwhile the African proverb states that “if we stand tall it is because we stand on the shoulders of many ancestors”.  Today we praise the efforts of those who have gone before us; women who fought for what they believed in.

• Arinthia S. Komolafe is an attorney-at-law.  Comments can be directed at: commentary@komolafelaw.com

Jul 05, 2012

thenassauguardian

Caribbean Blog International

Bahamas Real Estate Association (BREA) recommends to the Government that it reduce Stamp Duty on property deals by 2 percentage points “across the board” ...taking the rates back to where they were before the 2010-2011 Budget

Realtors Recommend Stamp Duty Cuts 'Across The Board'

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Real Estate Association (BREA) has recommended to the Government that it reduce Stamp Duty on property deals by 2 percentage points “across the board”, taking the rates back to where they were before the 2010-2011 Budget.

Franon Wilson, BREA’s president, confirmed in a recent interview with Tribune Business that the Association had recommended to the Christie administration that it look beyond the cut in the top Stamp Duty rate, from 12 per cent to 10 per cent, which it brought in with the 2012-2013 Budget.

“That’s one of the things we recommended, yes,” Mr Wilson said, when asked by Tribune Business whether BREA had recommended that all Stamp Duty rates be reduced by two percentage points.

“One of the things we did invite the Government to consider was reducing that across the board, as what it would do for the $250,000-plus category it would do for all others as well.

“We’re grateful that at least one group will see a benefit, but that same excitement that group over $250,000 has would be shared locally with everyone else/.”

Still, Mr Wilson said BREA and its members welcomed “anything to reduce the cost of home ownership” and stimulate activity in the market.

Stamp Duty is effectively a one-time cost imposed on real estate transactions, and Mr Wilson said the cut in the top rate would boost activity in middle class Bahamian communities such as Twynam Heights.

The revised Stamp Duty structure involves a 4 per cent rate on property valued at $20,000 or less; 6 per cent for property valued between $20,000 and $50,000; 8 per cent for property valued at between $50,001 and $100,000; and 10 per cent for holdings greater than $100,000.

Mike Lightbourn, head of Coldwell Banker Lightbourn Realty, said that any Stamp Duty reduction was welcome, but the real estate industry needed to remember that the Government had to raise revenues somewhere.

Noting that the Government had given up much in Stamp Duty with the exemptions for first-time buyers on properties worth up to $500,000, Mr Lightbourn added: “The less taxes the better, but that’s one of the sources of revenue. Any time you don’t have to pay Stamp Duty, it all helps.”

William Wong, head of William Wong & Associates, said the Government should follow BREA’s recommendation and reduce Stamp Duty rates across all price brackets.

“I’m hoping they will take a look at it and make the necessary changes,” Mr Wong said.

July 04, 2012

Tribune242

Caribbean Blog International