business@tribunemedia.net
TUESDAY, JUNE 15, 2021
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MICHAEL PINTARD
Fisheries exports enjoy 19% value increase in 2020 By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN fisheries generated a 19 percent increase in the value of its export earnings in 2020 despite a reduction in the volume of domestic landings, a Cabinet minister disclosed yesterday. Michael Pintard, minister of agriculture and marine resources, in his contribution to the 2021-2022 budget debate said that the value of domestic fisheries landings had largely held despite the fall-out from the COVID19 pandemic. Giving an update on the sector’s health, the minister indicated that it remained an invaluable source of scarce foreign currency earnings at a time when the major source, tourism, was still recovering from the pandemic’s devastating impact. “During calendar year 2020, the commercial fishing sector saw an overall 18.8 percent decrease in total landings and a one percent decrease in the value of those products landed,” Mr Pintard said.”Total fishery product landings in calendar year 2020 were 5.2m pounds with a total value of some $62.1m. Crawfish landings accounted for 84.8 percent of the total landings, and 93 percent of the total value of the landings. “Additionally, $76.8m of foreign exchange resulted from the export of frozen crawfish tails, conch meat, stone crab claws, scalefish and inedible marine resources during calendar year 2020. The figure represents an 18.9 percent increase in the value of fishery products and resource exports over calendar year 2019. “Accordingly, the export of frozen crawfish tails represented some 93.5 percent of the value of the exports, as well as a 19.7 percent increase in frozen crawfish tails exports over calendar year 2019.” Turning to Hurricane Dorian’s impact on the fisheries industries in Grand Bahama and Abaco, Mr Pintard added: “In September 2109, Hurricane Dorian
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Nightspot left facing ‘insurmountable task’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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POPULAR nightspot yesterday revealed it faced “an insurmountable task” to remain open due to the “toll” inflicted by the “inequitable” application of COVID-19 measures combined with the ongoing 10pm curfew. Kevin Knowles, Club Waterloo’s principal, told Tribune Business the absence of a “level playing field” over how health-related restrictions are applied meant his business - and other local entertainment establishments - are operating at a competitive disadvantage against hotels as well as operators who have been given exemptions from the rules. After emerging from the the initial COVID-19 lockdown last year, he explained that the East Bay Streetbased nightclub/bar had adjusted its traditional business model multiple times in an effort to comply with the government’s health protocols.
It initially constructed a 3,000 square foot patio area to cater to outdoor dining, together with seating for 100 guests, and then sought permission from the Prime Minister’s Office to cater to private parties featuring resort guests seeking an offproperty experience during their Bahamas vacation on the basis that most - if not all - will likely be fully vaccinated against COVID-19. Revealing that this permission “would have been the difference between staying open and closing”, Mr Knowles disclosed that Club Waterloo was “not even afforded a reply” to its latter request. This was despite the prime minister, in talking about a so-called Vaccination Day on Friday, suggesting that fully vaccinated persons may soon be allowed to go out during the curfew and attend large gatherings without needing permission. With no help from the government, and unable to
fairly compete against the likes of hotel bars and restaurants, Mr Knowles said Club Waterloo had little choice but to close and once again furlough 50-60 full and part-time staff until a more favourable operating environment emerges because ongoing financial losses were “unsustainable”. Pointing out that these issues went well beyond Club Waterloo, and are impacting multiple businesses in the entertainment/ night-time industries sector, he urged the government to “even the playing field” by allowing local businesses to follow Bahamian resorts in testing patrons for COVID19 at the door prior to their entrance. Also calling on the government to lift the curfew and “extend operating hours”, Mr Knowles said: “Our concerns are that it doesn’t seem to be a level playing field. It’s difficult to compete and stay relevant when the rules are applied
THE government is eyeing a $1m minimum for investors to qualify for economic permanent residency by making non-real estate investments in The Bahamas, a Cabinet minister revealed last night. Elsworth Johnson, minister of financial services, trade and industry and immigration, told Tribune Business that the Immigration (Amendment) Bill 2021 that was tabled alongside the budget is designed to “improve The Bahamas’ competitive edge” by expanding the routes through which high net worth individuals and their families can qualify for permanent residency. Explaining that the reforms are designed to “unlock” the potential that economic permanent residency has for attracting
selectively to different businesses and venues. It’s already a difficult climate for operations such as ours, and to be compounded with an un-level playing field, it became an insurmountable task.” The Club Waterloo principal echoed others who have previously called on the government to uniformly apply the COVID-19 restrictions and health measures to all businesses, as well as provide a ‘road map’ towards exiting these rules. There have also been repeated assertions that some of the government’s decisions are not justified or backed by the medical science, leading to inconsistent decision-making. “Communication to businesses and transparency in rationale are non-existent,” Mr Knowles added. “For Bahamians to be able to patronise one entity and not another has no medical
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Consumers warned: Brace for 8-12% food price hikes By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
SUPER Value’s president yesterday warned that consumers will have “a big pill” to swallow by Christmas, as he predicted that grocery and meat prices will increase by eight percent and ten to 12 percent respectively. Rupert Roberts told Tribune Business that a combination of increased demand, as the Bahamian and global economies continue to reflate following COVID-19, combined with soaring freight and trucking costs and other supply chain bottlenecks, were all feeding into increased food prices that will likely have a growing impact on household budgets as the 2021 second half progresses. “It looks like by Christmas it’s going to be at least eight percent, and possibly a ten percent, increase,” he disclosed. “It’s feeding in every day, and by the time
• Super Value chief says ‘big pill’ for Xmas • But existing stocks mean delayed impact • Grocers chief: ‘We’ll absorb what we can’
RUPERT ROBERTS we’re getting on to Christmas we’re going to have the full effect. Some grocery articles will be up in the vicinity of eight percent, and meat and poultry probably by ten to 12 percent. That’s a big pill.... “Freight and trucking costs are really playing hell with all of it. By October/ November we’ll see things increasing up to eight to ten percent, which is beyond
this country’s control. Just buy as you need and don’t over stock the pantry.” Mr Roberts instructed Super Value’s buyers to “lock in all you can, even at higher prices, if you suspect they’re going to go higher. I thought Christmas would catch us by five to eight percent higher, but it now looks more like ten to 12 percent higher as the country opens up and the US gets back to normal”. The Super Value chief, acknowledging that “prices continue to jump” as inflation continues to pick-up in many countries with the post-COVID reflation, took this newspaper on a tour of the supermarket chain’s buyers and suppliers to determine the extent of food costs increases in recent weeks.
• Regime reforms to ‘improve competitive edge’ • Bill to diversify qualification beyond real estate • Aims to ‘unlock’ foreign exchange potential
ELSWORTH JOHNSON wealthy investors and foreign exchange earnings to these shores, he added that such persons will have more options through which to qualify other than the present, narrow route of acquiring Bahamian real estate valued at $750,000 or more. The Bill’s reforms will
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ADRIAN GIBSON
• Waterloo owner hits at ‘inequitable’ COVID rules use • Says unfair competition, continued curfew drove close Water Corp sees • No reply to exemption request; 50-60 are furloughed cash collections
Govt mulling $1m investment floor for permanent residency By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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permit investors to qualify via two other routes, one of which involves making investments “in The Bahamas of such a kind and of such an amount as may be so prescribed”, while the other involves a mix of such investment and real estate purchases. “We’re looking at at least
$1m,” Mr Johnson told this newspaper, when asked what the minimum investment will be for persons to qualify for permanent residency without acquiring real estate. He previously said in his contribution to the 20212022 budget debate that such “investments” would be in endowment funds targeted at education, sports, the arts and culture, and social development projects. The minister last night said the government has yet to determine whether investments in government securities, such as bonds, or the proposed National Infrastructure Fund and sovereign wealth fund, would enable investors to
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While today’s visit from a US Meat Export Federation official is likely to shed more light on that market, pork prices - which also include chops, bacon, ham and ribs - were said to have risen by ten percent in recent months and weeks. Steaks had increased by $1 apiece, and beef prices have also “jumped 12 percent higher”. Much of the increase has been attributed to the reopening of the Bahamian, and global, hospitality and tourism industries. Hotels and restaurants are ramping up supplies as guest numbers increase, while the return of the cruise ship industry and its Nassau home porting has also caused a local demand rise.
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decline by $6m
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Water and Sewerage Corporation continues to endure COVID-19’s “devastating impact” on cash collections which have decreased by 24 percent or nearly $6m year-to-date, its executive chairman said yesterday. Adrian Gibson, during his budget debate contribution in the House of Assembly, revealed that state-owned utility faces “unprecedented challenges” due to the continued sharp fall-off in customer bill payments. He said: “COVID-19 has had a devastating impact on Water and Sewerage Corporation’s cash flow, as there was an overall decrease in cash collections of $11.5m or 19 percent from $60.8m in 2019 to $49.3m for the same period of 2020. “There’s a decrease in 2021 cash collection by 24 percent, or $5.7m, from $21.4m year-to-date May, 2020 to $15.7m year-to-date in May, 2021.” Mr Gibson added that the “substantial reduction in cash collection” had also stemmed from Hurricane Dorian, which had knocked out the Water and Sewerage Corporation’s second most important revenue-generating market, Abaco. He said: “The loss of Water and Sewerage Corporation’s second highest revenue generator in Abaco greatly impacted our cash flow. Abaco’s cash collection decreased by 80 percent, from $2.185m yearto-date in December2019 to $427,000 for the same period in 2020. “Note also that in 2021 there’s a slight increase in Abaco’s cash collection from $90,000 year-to-date up to May 2020 to $207,000 yearto-date 2021.” Mr Gibson added that this is “significantly less” than what Abaco collected historically, which averaged $1.3m by May annually. Blaming the decrease in cash collections on the halt to delinquent
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