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TUESDAY, MAY 2, 2023
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‘Sky’s the limit’: New auto sales soar 40% • Industry eyes ‘banner year’ and best in a decade • Vehicle availability and pricing remain headwinds • Auto Mall chief hopes no tax tinkering in Budget
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS Motor Dealers Association’s (BMDA) president yesterday voiced optimism that “the sky’s the limit” for the sector in 2023 after new car sales increased by “almost 40 percent” year-over-year for the first quarter. Ben Albury told Tribune Business the industry could enjoy “a banner year” if vehicle pricing and supply continues to further stabilise post-COVID, with dealers potentially enjoying their strongest sales collectively in almost a decade. He added that his own dealership, Bahamas Bus and Truck, has received more new vehicle
inventor “in the last two months than we probably saw for the six months prior” as manufacturers and distributors BEN ALBURY start to catch up on the production order backlog that has plagued the industry since the world emerged from the first pandemic lockdowns. “So far, so good,” Ben Albury told this newspaper. “Sales have been very robust, and demand is quite high. We’re seeing quite a lot of floor traffic, and that is reflected in the reports I’m
seeing from across the BMDA. I know that in our business we can probably attribute that to starting to see some inventory coming through. It’s still not as quick and to where we’d like to see it, but there’s definitely been a noticeable improvement so that’s encouraging. “Sales are up quite a bit. We’re seeing about a 40 percent increase over the first quarter last year. That’s very significant; I didn’t even realise it was that much. If new car sales continue on the pace they’re on right now, we could easily see a year as good as maybe 2013 or 2014. These type of levels we’ve not seen since then; certainly at least for seven to eight years.” Ben Albury credited the robust post-COVID revival by tourism
NIB ordered: Pay ex-chief seven years of pensions By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE National Insurance Board (NIB) has been ordered to pay a former director almost seven years’ worth of pension benefts after losing a legal battle over her due retirement entitlement. Justice Diane Stewart, in an April 28, 2023, ruling found that NIB “negligently misrepresented” to Rowena Bethel that she could participate in its staff pension plan as “an inducement” to encourage her to sign a three-year contract to become its most senior executive in July 2013.
• Owing $673k after ‘negligent misrepresentation’ • Perry, Shane told eligibility key to director joining • Attorneys demand ‘culture change’ on fairness The verdict recorded how Ms Bethel “made clear” to ex-prime minister Perry Christie, and then-minister responsible for NIB, Shane Gibson, that taking the top job at the social security system depended on her receiving an NIB pension. However, it was only after she chose
not to renew her contract following “a breakdown in her relationship with key individuals at NIB” - that Ms Bethel was told she was not entitled to any pension payouts. This was because the NIB pension scheme’s rules stipulated that persons on a fixed-term contract such
ROWENA BETHEL as Ms Bethel, who was formerly the Ministry of Finance’s in-house legal adviser, did not qualify for any pension entitlement. Ms Bethel, asserting that she was never informed of this prior to agreeing to become NIB’s chief executive, initiated legal action seeking damages for “breach of contract or, alternatively, misrepresentation” after she received no pension for seven years. Justice Stewart, in finding for Ms Bethel, awarded her damages equivalent to
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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CENTRAL BANK OF THE BAHAMAS
Governor trims growth forecast ‘closer to 4%’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS’ stopover visitor numbers rebounded to 97 percent of pre-COVID levels in the 2023 first quarter, the Central Bank’s governor said yesterday, while slightly trimming his fullyear economic growth forecast. John Rolle, addressing the regulator’s first quarter economic briefing, predicted Bahamian gross domestic product (GDP) growth “will moderate closer to 4 percent” in 2023 - a figure in line with International Monetary Fund (IMF) and World Bank forecasts, but slightly less than
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Tackle ‘structural inefficiency’ before capping banking fees
Bahamas ‘closer to inflation peak’ THE CENTRAL Bank’s governor yesterday predicted that The Bahamas is now “closer to the peak, if we have not yet seen it”, of inflationary pressures that have driven the post-COVID cost of living crisis. John Rolle, speaking at the regulator’s 2023 first quarter economic briefing, said signs of pricing pressures easing in the US and other major world economies will eventually translate to The Bahamas after a time lag given that this nation imports virtually all it consumes. “We cannot say at the Central Bank whether that has peaked yet,” he replied in response to this newspaper’s questions, “but what we can say is that to the extent there are signs of easing or moderation in the US and other countries, that means the levelling off and eventual decline in The Bahamas will not be far behind. “I think that’s important, and we have started to see in the US some easing. Additionally, there is still a lot more by way of easing of inflation that everyone would like to see, but we think we’re closer to the peak if we have not yet seen it.” The Central Bank, in its monetary policy committee (MPC) briefing for the 2023 first quarter, said: “During the 12 months to January 2023, inflation accelerated to 5.7 percent from 3.2 percent in the same period of 2022 led by restaurants and hotels costs, followed by transportation.”
and the wider Bahamian economy for stimulating consumer demand for new vehicles. “I would say that’s far exceeded expectations,” he said of the 2023 first quarter percentage increase, although he did not provide actual figures. “I know January, February and March were all outpacing the months before. “I know during that period we were seeing quite a bit of inventory coming in, which is what I would attribute it to in my own personal business. It seems the demand has stayed very solid, and it’s got much better getting inventory. Inventory is coming through a lot better. There’s still some delays, and we have been having to adjust some orders to remove
the 4-6 percent range he gave three months ago at end-January. With the Bahamian economy’s rebound from COVID-19’s ravages almost complete, he said there were numerous indicators showing that growth was reducing back towards its long-run average of between 1-2 percent. For the 2023 first quarter, growth in total private sector foreign currency inflows through the commercial banks - while up by almost percent year-over-year - was down significantly on the prior year’s near two-thirds expansion. And private sector foreign exchange outflows to purchase goods and services, while up 20 percent during the three months to end-March 2023, also showed moderated growth compared to the 37 percent expansion during the same period in 2022. Nevertheless, Mr Rolle said The Bahamas’ external reserves, which support the one:one fixed exchange rate peg with the US
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• But Central Bank pledges consumer protection regime By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS will cause more problems than it solves if it seeks to “cap” bank fees without first tackling “structural inefficiencies” in the industry, the Central Bank’s governor warned yesterday. John Rolle, speaking at the regulator’s 2023 first quarter economic briefing, pledged that it is developing “a suite of recommendations” to address consumer financial protection concerns related to the cost of, and access to, financial services throughout The Bahamas. However, he argued that there needs to be a “comprehensive approach” to addressing these issues amid arguments by Fred
JOHN ROLLE Mitchell, minister of foreign affairs, in the House of Assembly last week that the Government may need to intervene with legislation to address banking industry challenges amid a growing chorus of complaints from Bahamian consumers. Mr Rolle said the Central Bank does not have a “negative stance” towards
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