Kerzner's concerns on Baha Mar project
By PAUL G TURNQUEST
Tribune Staff Reporter
pturnquest@tribunemedia.net
A NEW day is dawning in the Bahamas. An entity that was once only talked about will soon become a reality on Cable Beach - Baha Mar.
At an estimated value of over $2.6 billion, it is considered by all estimates to be a monolithic project. To some it is considered a monstrosity that will consume all that was here before it. To others it is a golden egg.
To the chairman and CEO of Kerzner International, Sir Sol Kerzner, it is something else altogether.
Last week, Sir Sol made a rare appearance in the local press by issuing a statement to the media on the impending approval of Bah Mar.
In his statement, Sir Sol said that while they welcomed any project that would enhance and improve the tourism sector in The Bahamas, "the proposed terms of the Baha Mar project violates the Kerzner Heads of Agreement with The Bahamas." He promised that Kerzner International would discuss with the Government how to address this "breach" in their "most favoured nation" clause.
Principle
Since this statement there has been much talk in the press about what exactly a most favoured nation clause is. According to the Minister of State for Finance, Zhivargo Laing, a MFN classification is an internationally established economic principle, centrally recognized by the World Trade Organization (WTO), which seeks to establish a level playing field between mutual parties.
"The term is counter intuitive," Minister Laing explained.
"The name suggests that you treat the entity with MFN status more favourably than others, but what it really means is that you treat everyone alike; you don't treat anyone more favourably," he said.
Based on the MFN principle, if one MFN entity is granted special Customs rates, for example, then all MFN entities should be granted special Customs rates. The specific rates would be established by government policy or law.
In the case of the Bahamas, the Hotels Encouragement Act addresses the issue of concessions, while allowances for labour are specified in government policy, he said.
In order to establish whether a breach of MFN privilege exists, Mr Laing suggested one would have to assess a competing agreement "in its totality" and not compare a single line item. He said the question of a breach is "not so simple from the government's point of view."
In fact during the Prime Minister's wrap up on the Baha Mar debate he said, "I do not concede that we would be in breach of the deal with Kerzner. The relationship between the Bahamas and Kerzner has been mutually beneficial," Prime Minister Ingraham said.
Sir Sol, however, has taken the conversation to another level when he revealed during a teleconference with the press last week that if Baha Mar were to be approved in its current state the jobs of over 8,000 employees at Atlantis could be put at risk.
"It seems to me pretty ridiculous in this current environment, even if the economic environment were a lot better to look to come in and double the current number of rooms overnight. It seems to me pretty irresponsible. I also believe that one should take into account that we have 8,000 people working with us, and if this were to move forward the likelihood is that people's jobs would have to be threatened. It is just impossible, practically impossible to double the size of the market.
Pressure
"As we said in our statement, last year was a tough year and occupancy was under pressure. Well guess what, this year is even tougher. So it seems pretty ridiculous to me that these folks are wanting to move forward," he said.
And move forward they have. The Baha Mar labour resolution was passed unanimously before the House of Assembly (36 voting for, with four absent), which allows for 8,150 foreign workers, but no more than 5,000 at one time to be employed on the Baha Mar Cable Beach project.
Following this unanimous vote in the House of Assembly last week, Baha Mar's senior vice-president of external affairs, Robert "Sandy" Sands said that construction for the single-phase $2.6 billion Baha Mar development project could break ground as early as January, pending the close of the Export Import (EXIM) Bank of China loan.
Contractors have already been chosen for the first six construction packages, totaling $60 million, which will include the new Commercial Village contracts and the new West Bay Street.
According to Mr Sands, the initial payout will cover construction contracts and also includes numerous Bahamian architects, engineers, quantity surveyors, suppliers and many other related parties who will participate in these first six contract packages.
Prior to the approval of this massive project, Sir Sol said that he did not want to speculate on what he would do if Baha Mar was approved without at least the development being "phased" in as his Atlantis properties were. Now that the project has been pushed through the proverbial pipeline, the question remains: What will Atlantis do in response?
Addressing these concerns, Prime Minister Hubert Ingraham informed the nation that he was confident that Sir Sol's concerns about Baha Mar could be resolved satisfactorily.
He also publicly proclaimed his respect and gratitude for Sir Sol's contributions to the country, adding that he will do anything in his power to ensure the Atlantis product remains successful on Paradise Island. However this commitment, he said, does not mean he will not be fair to other developers.
"We were always concerned, when we came to office that there was nothing in the Baha Mar deal that would have given them a better deal than Kerzner. I think I can say that the thing that ticked Kerzner (off) more than anything else is a statement by Perry Christie to the effect that Baha Mar only wants to get what Kerzner got," said Mr Ingraham on the radio show Issues of the Day.
"There is no question in my mind of my high regard for Sol Kerzner and what he has done for the Bahamas. I was berated by many when he came in 1994 and what he has done for the Bahamas has transformed our tourism industry.
"He has provided us with 2,000 more jobs than he committed to, he has a very successful project on Paradise Island and I will do all I can, for as long as I can, to ensure that his project is successful."
"That has nothing to do with whether I will be fair to anybody else. (But) I will not knowingly give anybody else a better deal than Kerzner got," stated the nation's chief.
During his live radio interview, Mr Ingraham also accused the former Christie administration of engaging in secret deals with Baha Mar by promising them concessions not included in their contract.
He said these secret concessions are part of what government is trying to renegotiate.
"The PLP government gave Baha Mar a deal over and above what they signed in the contract. So on the same day that they signed the contract they issued what was called side letters offering Baha Mar more.
"We tried to pull those things back. We are now doing an analysis to see the extent to which we have been successful, we think we have been somewhat successful in ensuring that there is equity and balance between the two."
Hopefully this "equity" and "balance" between the two resorts will eventually allow the two properties to complement each other, without there being any cannibalism in the marketplace, he said.
However, this appears highly unlikely if both hotels will be aiming for the same dwindling number of "high-end" visitors.
At this stage it is not easy to dismiss Atlantis' concerns as a mere fear of competition when one considers that our air arrivals have not actually been booming over the past few years. With a global recession still wreaking havoc on our tourism industry, no "expert" is willing to guess on when things are expected to turn around in that sector.
Maybe, like the haunting voice in the Hollywood film "A Field of Dreams," if Baha Mar builds it, the tourists will come.
November 22, 2010
Tribune242 Insight
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Showing posts with label Baha Mar labour resolution. Show all posts
Showing posts with label Baha Mar labour resolution. Show all posts
Monday, November 22, 2010
Thursday, September 30, 2010
The governing Free National Movement (FNM) is prepared to pay the political price over the Baha Mar labour resolution says Prime Minister Hubert Ingraham
PM: FNM will pay political price over Baha Mar labour resolution
By PAUL G TURNQUEST
Tribune Staff Reporter
pturnquest@tribunemedia.net:
PRIME Minister Hubert Ingraham said yesterday that he and his party are prepared to take whatever political ramifications will come if they are forced to go it alone on the controversial labour resolution for the Baha Mar project.
When asked yesterday during a nationally-televised press conference at the House of Assembly, Mr Ingraham said he will make the best decision available to him at the time.
"I will not take account of what the political consequences of it is. I will do what I think is the best for the Bahamas and if that means that there is a political price to pay then I will pay it, and my party will pay it," Mr Ingraham affirmed.
For some time now, the Progressive Liberal Party and the government have been at odds on this controversial labour component of the Baha Mar project. With some 8,100 Chinese labourers needed to complete the development, both political parties have voiced their "serious concerns" on the matter. Coupled with the fact that unemployment remains high throughout the country, and an election year is slated for 2012, many politicians are fearful of having to publicly vote either in favour of or against this colossal $2.6 billion project.
In one vein, Baha Mar promises to provide thousands of permanent jobs for Bahamians once the project is completed. However, at the same time, it will require the largest foreign labour input on any one development to complete the core project - again while thousands of Bahamian labourers remain unemployed.
And, even if the project is completed as planned, there still remains concerns over whether or not the newly-added 3,500 rooms could actually be filled.
September 30, 2010
tribune242
By PAUL G TURNQUEST
Tribune Staff Reporter
pturnquest@tribunemedia.net:
PRIME Minister Hubert Ingraham said yesterday that he and his party are prepared to take whatever political ramifications will come if they are forced to go it alone on the controversial labour resolution for the Baha Mar project.
When asked yesterday during a nationally-televised press conference at the House of Assembly, Mr Ingraham said he will make the best decision available to him at the time.
"I will not take account of what the political consequences of it is. I will do what I think is the best for the Bahamas and if that means that there is a political price to pay then I will pay it, and my party will pay it," Mr Ingraham affirmed.
For some time now, the Progressive Liberal Party and the government have been at odds on this controversial labour component of the Baha Mar project. With some 8,100 Chinese labourers needed to complete the development, both political parties have voiced their "serious concerns" on the matter. Coupled with the fact that unemployment remains high throughout the country, and an election year is slated for 2012, many politicians are fearful of having to publicly vote either in favour of or against this colossal $2.6 billion project.
In one vein, Baha Mar promises to provide thousands of permanent jobs for Bahamians once the project is completed. However, at the same time, it will require the largest foreign labour input on any one development to complete the core project - again while thousands of Bahamian labourers remain unemployed.
And, even if the project is completed as planned, there still remains concerns over whether or not the newly-added 3,500 rooms could actually be filled.
September 30, 2010
tribune242
Tuesday, September 21, 2010
Chinese Criminals to Work on The Baha Mar Project: Embassy of the People's Republic of China in Nassau Responds to Allegations
Speculation that Chinese criminals may work on Baha Mar 'baseless'
By MEGAN REYNOLDS
Tribune Staff Reporter
mreynolds@tribunemedia.net:
SPECULATION that thousands of Chinese criminals will be brought in to build Baha Mar have been called baseless allegations by the Embassy of the People's Republic of China in Nassau.
Concerns raised in the local press suggested the Chinese government has chosen convicts from its overcrowded prisons to work on foreign projects and may do the same when they bring in 8,150 workers to construct Baha Mar.
Editorial writers called on government to exercise due diligence in vetting their work permits if the foreign labour is approved as concerns stemmed from an article published in a Canadian newspaper, The Globe and Mail, which reported that China "has devised a novel strategy to relieve pressure on its overcrowded prisons: Use convicts as labourers on overseas projects in the developing world." It gave as example projects in Sri Lanka, the Maldives and Africa where Chinese labour was used.
But the suggestion that The People's Republic of China may use the $2.6 billion Baha Mar project to export criminals to the Bahamas provoked a clear clarification of the facts from the Chinese embassy.
Liu Liqun, second secretary and press officer at the Embassy of the People's Republic of China, said that the allegations are unfounded.
"The Chinese Embassy fully respects each and every view expressed surrounding the Baha Mar project," he stated.
"However, such groundless accusations, which insult not only China, but also those countries having cooperation with us, go beyond tolerance."
Mr Liqun said that the Chinese contractors who have been working tirelessly on the Bahamas National Stadium project, "are disciplined and diligent, winning full respect and high praises from the Bahamian society."
PLP MP Fred Mitchell suggested the reason for speculation over the integrity of Chinese workers could stem from the FNM government's failure to be clear with the public on the issue.
He said: "The government is not exercising any leadership with this project and I think it's deliberate because they want to scuttle the project and that lets in speculation about this or that.
"I think some of the criticism has been exaggerated, but each view should be seriously considered by the authorities to see whether or not it is possible to deal with the concerns.
"However they seem to have the country flailing around wildly without any sense of direction."
A labour resolution tabled by Prime Minister Hubert Ingraham in the House of Assembly has paved the way for the approval of work permits for the 8,150 Chinese workers and parliamentarians are expected to debate and vote on the resolution this Wednesday or Thursday.
The ratio of foreign workers to Bahamian employees at Baha Mar is expected to be 71 per cent foreign to 29 per cent Bahamian during the construction phase as agreed in the partnership deal between Baha Mar, the China Export-Import Bank and China State Construction.
Mr Mitchell said the anticipated parliamentary vote is ludicrous as it is the government's responsibility to decide whether the Chinese employees should be permitted to work at Baha Mar or not.
"What business is it of ours to ask Parliament whether or not the government should grant work permits?" he asked.
"I think the whole notion is ludicrous.
"The Prime Minister is looking for political cover because he's afraid to make the decision."
Baha Mar estimates it will take around five years to build six hotels with around 3,500 rooms and condominiums, a 100,000 sq ft casino, 200,000 sq ft of convention facilities, a 20-acre beach and pool experience, an 18-hole golf course and a 60,000 sq ft retail village in Cable Beach.
The project is expected to inject an estimated $1 billion into the Bahamas Gross Domestic Product (GDP) and create almost 11,000 permanent jobs for Bahamians.
September 20, 2010
tribune242
By MEGAN REYNOLDS
Tribune Staff Reporter
mreynolds@tribunemedia.net:
SPECULATION that thousands of Chinese criminals will be brought in to build Baha Mar have been called baseless allegations by the Embassy of the People's Republic of China in Nassau.
Concerns raised in the local press suggested the Chinese government has chosen convicts from its overcrowded prisons to work on foreign projects and may do the same when they bring in 8,150 workers to construct Baha Mar.
Editorial writers called on government to exercise due diligence in vetting their work permits if the foreign labour is approved as concerns stemmed from an article published in a Canadian newspaper, The Globe and Mail, which reported that China "has devised a novel strategy to relieve pressure on its overcrowded prisons: Use convicts as labourers on overseas projects in the developing world." It gave as example projects in Sri Lanka, the Maldives and Africa where Chinese labour was used.
But the suggestion that The People's Republic of China may use the $2.6 billion Baha Mar project to export criminals to the Bahamas provoked a clear clarification of the facts from the Chinese embassy.
Liu Liqun, second secretary and press officer at the Embassy of the People's Republic of China, said that the allegations are unfounded.
"The Chinese Embassy fully respects each and every view expressed surrounding the Baha Mar project," he stated.
"However, such groundless accusations, which insult not only China, but also those countries having cooperation with us, go beyond tolerance."
Mr Liqun said that the Chinese contractors who have been working tirelessly on the Bahamas National Stadium project, "are disciplined and diligent, winning full respect and high praises from the Bahamian society."
PLP MP Fred Mitchell suggested the reason for speculation over the integrity of Chinese workers could stem from the FNM government's failure to be clear with the public on the issue.
He said: "The government is not exercising any leadership with this project and I think it's deliberate because they want to scuttle the project and that lets in speculation about this or that.
"I think some of the criticism has been exaggerated, but each view should be seriously considered by the authorities to see whether or not it is possible to deal with the concerns.
"However they seem to have the country flailing around wildly without any sense of direction."
A labour resolution tabled by Prime Minister Hubert Ingraham in the House of Assembly has paved the way for the approval of work permits for the 8,150 Chinese workers and parliamentarians are expected to debate and vote on the resolution this Wednesday or Thursday.
The ratio of foreign workers to Bahamian employees at Baha Mar is expected to be 71 per cent foreign to 29 per cent Bahamian during the construction phase as agreed in the partnership deal between Baha Mar, the China Export-Import Bank and China State Construction.
Mr Mitchell said the anticipated parliamentary vote is ludicrous as it is the government's responsibility to decide whether the Chinese employees should be permitted to work at Baha Mar or not.
"What business is it of ours to ask Parliament whether or not the government should grant work permits?" he asked.
"I think the whole notion is ludicrous.
"The Prime Minister is looking for political cover because he's afraid to make the decision."
Baha Mar estimates it will take around five years to build six hotels with around 3,500 rooms and condominiums, a 100,000 sq ft casino, 200,000 sq ft of convention facilities, a 20-acre beach and pool experience, an 18-hole golf course and a 60,000 sq ft retail village in Cable Beach.
The project is expected to inject an estimated $1 billion into the Bahamas Gross Domestic Product (GDP) and create almost 11,000 permanent jobs for Bahamians.
September 20, 2010
tribune242
Monday, September 13, 2010
Raynard Rigby - Former Progressive Liberal Party (PLP) Chairman - Urges The Opposition To Reject Baha Mar Developers 8,150 Chinese Workers Proposal For Its $2.6 Billion Cable Beach Redevelopment Project
Former PLP chairman questions the need for 8,150 Chinese workers
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
FORMER Progressive Liberal Party chairman Raynard Rigby is urging the opposition to reject the "absurd" notion that Baha Mar developers need 8,150 Chinese workers to construct the $2.6 billion project.
Mr Rigby, partner of law firm Gibson, Rigby and Co, questioned how the PLP could support the proposal in face of a high unemployment rate, suggesting this did not coincide with the group's ideology of being the party of the working man.
"We should reject as absurd the need for 8,150 Chinese workers. Unemployment is reaching 25 per cent. How can the party of the working man agree to such a move without causing irreparable damage to our philosophy?"
Mr Rigby added that the party should only throw its full support behind the Cable Beach redevelopment if the current deal is the same one the PLP left on the table when they lost the general election in 2007.
Over the past few weeks, key members of the PLP have been meeting with trade unionists, Baha Mar officials, and stakeholders in the construction industry in order to formulate an informed position on the current deal.
However, Mr Rigby thinks the party should expand its discussions to public forums in order to glean a clear consensus on party supporters' concerns.
"The views of the unions and other civil groups do not represent the views of the PLP. This is a matter of national importance and the PLP should be taking the leadership on this issue by talking to the Bahamian people ... talking to them and not at them.
"We therefore should go throughout the country seeking the views and opinions of the Bahamian people, that is what a responsible opposition would do that is serious about winning the next general election. This cannot be a deal made in a dark room with the selected few," said Mr Rigby in a letter sent to PLP Leader Perry Christie, a copy of which The Tribune obtained.
The lawyer also cautioned officials in the party to analyse whether the Chinese involvement in Baha Mar will truly benefit the country in the long run, drawing examples with this deal and the Hutchinson Whampoa port, operated by a Hong Kong shipping giant.
"We must assess the Chinese involvement in this deal by looking at their impact in Freeport in the tourism product? Have they assisted with bringing Chinese tourists to Freeport? Have they demonstrated that they are resort/hotel savvy? It seems that the product in Freeport has declined and that no leadership has been brought by the Chinese. How do we know that the same dilemma won't occur at Cable Beach," he asked.
He also criticised statements made by Obie Wilchombe, leader of opposition business in the House of Assembly, who said there is "no chance in hell" that the party would abstain from voting on government's Baha Mar labour resolution.
"I thought that this was a mistake as it came too early in the development of the party's strategy," said Mr Rigby.
Last week, Prime Minister Hubert Ingraham tabled a labour resolution which would pave the way for the approval of work permits for 8,150 Chinese workers on the Baha Mar project in the House of Assembly.
Parliamentarians are expected to vote on the resolution later this month.
September 13, 2010
tribune242
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
FORMER Progressive Liberal Party chairman Raynard Rigby is urging the opposition to reject the "absurd" notion that Baha Mar developers need 8,150 Chinese workers to construct the $2.6 billion project.
Mr Rigby, partner of law firm Gibson, Rigby and Co, questioned how the PLP could support the proposal in face of a high unemployment rate, suggesting this did not coincide with the group's ideology of being the party of the working man.
"We should reject as absurd the need for 8,150 Chinese workers. Unemployment is reaching 25 per cent. How can the party of the working man agree to such a move without causing irreparable damage to our philosophy?"
Mr Rigby added that the party should only throw its full support behind the Cable Beach redevelopment if the current deal is the same one the PLP left on the table when they lost the general election in 2007.
Over the past few weeks, key members of the PLP have been meeting with trade unionists, Baha Mar officials, and stakeholders in the construction industry in order to formulate an informed position on the current deal.
However, Mr Rigby thinks the party should expand its discussions to public forums in order to glean a clear consensus on party supporters' concerns.
"The views of the unions and other civil groups do not represent the views of the PLP. This is a matter of national importance and the PLP should be taking the leadership on this issue by talking to the Bahamian people ... talking to them and not at them.
"We therefore should go throughout the country seeking the views and opinions of the Bahamian people, that is what a responsible opposition would do that is serious about winning the next general election. This cannot be a deal made in a dark room with the selected few," said Mr Rigby in a letter sent to PLP Leader Perry Christie, a copy of which The Tribune obtained.
The lawyer also cautioned officials in the party to analyse whether the Chinese involvement in Baha Mar will truly benefit the country in the long run, drawing examples with this deal and the Hutchinson Whampoa port, operated by a Hong Kong shipping giant.
"We must assess the Chinese involvement in this deal by looking at their impact in Freeport in the tourism product? Have they assisted with bringing Chinese tourists to Freeport? Have they demonstrated that they are resort/hotel savvy? It seems that the product in Freeport has declined and that no leadership has been brought by the Chinese. How do we know that the same dilemma won't occur at Cable Beach," he asked.
He also criticised statements made by Obie Wilchombe, leader of opposition business in the House of Assembly, who said there is "no chance in hell" that the party would abstain from voting on government's Baha Mar labour resolution.
"I thought that this was a mistake as it came too early in the development of the party's strategy," said Mr Rigby.
Last week, Prime Minister Hubert Ingraham tabled a labour resolution which would pave the way for the approval of work permits for 8,150 Chinese workers on the Baha Mar project in the House of Assembly.
Parliamentarians are expected to vote on the resolution later this month.
September 13, 2010
tribune242
Wednesday, August 25, 2010
Obie Wilchcombe: ...the amount of foreign labour needed for the Baha Mar project is "politically toxic"
The PLP 'still want Baha Mar vote to be carried by govt'
tribune242
THE Progressive Liberal Party has reportedly voted in favour of continuing to allow the government to carry the burden of whether or not the Baha Mar labour resolution is passed in the House of Assembly when it is brought before Parliament next month.
According to party sources who spoke to The Tribune yesterday, the PLP met and discussed the matter on Sunday night, and have stuck to their initial position that this vote will have to be carried by the current "FNM government."
On Sunday, PLP leader Perry Christie said the party will of course be directly influenced by the "complete urgency" to do something for the economy of the Bahamas.
"It is an increasing serious state of affairs that exists here. The country is desperately in need of relief in respect to this dire unemployment situation. The question for us in examining in detail the implications of whatever the number of work permits are, the impact on Bahamian labour, and the length of time of the work permits," he said.
Having financially backed the $2.6 billion investment, the People's Republic of China is also requesting some 4,920 work permits for Chinese labour for the construction of the project. These work permits will come before Parliament in the resolution on September 8 to be voted on.
Leader of Opposition Business in the House of Assembly, Obie Wilchcombe, has already described the amount of foreign labour needed for the project as "politically toxic" - adding that the government is requiring Parliament to vote on the matter to avoid taking the brunt of what is expected to be massive public criticism in the near future.
August 24, 2010
tribune242
tribune242
THE Progressive Liberal Party has reportedly voted in favour of continuing to allow the government to carry the burden of whether or not the Baha Mar labour resolution is passed in the House of Assembly when it is brought before Parliament next month.
According to party sources who spoke to The Tribune yesterday, the PLP met and discussed the matter on Sunday night, and have stuck to their initial position that this vote will have to be carried by the current "FNM government."
On Sunday, PLP leader Perry Christie said the party will of course be directly influenced by the "complete urgency" to do something for the economy of the Bahamas.
"It is an increasing serious state of affairs that exists here. The country is desperately in need of relief in respect to this dire unemployment situation. The question for us in examining in detail the implications of whatever the number of work permits are, the impact on Bahamian labour, and the length of time of the work permits," he said.
Having financially backed the $2.6 billion investment, the People's Republic of China is also requesting some 4,920 work permits for Chinese labour for the construction of the project. These work permits will come before Parliament in the resolution on September 8 to be voted on.
Leader of Opposition Business in the House of Assembly, Obie Wilchcombe, has already described the amount of foreign labour needed for the project as "politically toxic" - adding that the government is requiring Parliament to vote on the matter to avoid taking the brunt of what is expected to be massive public criticism in the near future.
August 24, 2010
tribune242
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