06232022 BUSINESS

business@tribunemedia.net

THURSDAY, JUNE 23, 2022

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Capital backs Bahamas: ‘Get past’ 7.2m record By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas was yesterday urged to quickly “get past” preCOVID’s record 7.2m visitor arrivals after this nation ranked among the top Caribbean destinations which tourism investment capital is most bullish on. Craig A. ‘Tony’ Gomez, the Baker Tilly Gomez managing partner, told Tribune Business that The Bahamas “certainly has the financiers on our side” after bank lenders ranked it joint-top among Caribbean nations they have most confidence in when it comes to tourism project lending. The accounting firm’s Caribbean Hospitality Financing Survey 2022, released at the recent Caribbean Resort and Hotel

• Nation among Caribbean tops for tourism investment • Baker Tilly chief asserts: ‘Financiers are on our side’ • Nation joint-top for banks; second among non-banks Investment Summit, also revealed that The Bahamas ranked second in the region among so-called non-bank lenders when it came to their confidence in the tourism sector’s prospects and financing

new resort and other developments. Around 14 percent of such lenders, the likes of private equity funds and family offices, cited The Bahamas as the Caribbean location they were

INSOLVENCY practitioners yesterday said the Attorney General’s ambition for The Bahamas to become “the near shore Delaware of corporate structuring” was both “achievable” and “appropriate” if the correct reforms are made.

Ed Rahming, Intelisys (Bahamas) founder and managing director, told Tribune Business that this nation would need to ensure it has both the right legislative framework and necessary human capital expertise - both Bahamian and expatriate - to fulfill the vision unveiled by Ryan Pinder during the Senate Budget debate. “I’m a positive guy, so I’m going to say off

CRAIG A. ‘TONY’ GOMEZ most bullish on. This nation ranked second only to Turks & Caicos, which was the front-runner by some way in attracting 33 percent of non-bank preferences, and was the only other country to make it into double digits. As for conventional bank financiers, The

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the top that I think it’s achievable,” he said of the “Delaware” comparison. “I’m a patriot. I don’t want to make it on me, but I think anything’s possible once we put our minds to it and set out exactly how we want to achieve it.” Mr Pinder did not set out such a specific road map yesterday, but said the “terms of reference” had been completed for

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THE Attorney General yesterday asserted that the Davis administration is making “the greatest investment in the Family Islands of the country that we have seen since independence”. Ryan Pinder used his Budget debate contribution in the Senate to tout numerous initiatives that showed “we are not Nassau-centric” as he focused on planned infrastructure and agriculture investments beyond New Providence. In

similar vein, he also hailed the various tax breaks and incentives designed to stimulate first-time home buyers, the housing and construction sectors as “the most expansive set of concessions in the history of The Bahamas”. Pointing to the Family Island Development Trust Fund, which is to be seeded with $200m in capital, and financed by 10 percent of all real property tax and Road Traffic Department fees collected on these islands, he said: “This fund will

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Underwater treasure: Gov’t seeks ‘majority’

By NEIL HARTNELL and YOURI KEMP Tribune Business Reporters A MULTI-MILLION underwater explorer yesterday said it will cease treasure salvaging in Bahamian waters immediately if the Government’s plans to take a “majority” share of the financial rewards prove unworkable. David Concannon, Allen Exploration Group’s

RYAN PINDER

spokesperson, told Tribune Business via email that its principal, Carl Allen, owner of Walker’s Cay in the north Abacos, was “not in the business of turning money into heat by lighting dollar bills on fire”. He was speaking after Ryan Pinder, the attorney general, told the Senate during his contribution to the Budget debate that

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Real estate transition boost on VAT savings By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

AG hails ‘greatest ever Out Islands investment’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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• To ‘reverse’ explorer’s current 75% share • Existing licensee will halt if unworkable • ‘Not in the business of burning dollar bills’

AG unveils ambition for ‘near shore Delaware’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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PARTIES to real estate deals that are in process could enjoy tax savings worth five-figure sums if they close - and bring their documents forward for stamping - on or after July 1, it was revealed yesterday. Both Senator Michael Halkitis, minister of economic affairs, and Simon Wilson, the financial secretary, told Tribune Business that conveyances

for property transactions valued at between $100,000 and $999,999 will attract VAT at the lower tiered rate that takes effect when the new fiscal year begins because the tax only becomes liable for payment when those documents are presented for stamping. Uncertainties surrounding the transition to new VAT rates and regimes have bedeviled realtors and attorneys, not to mention their buyer/seller clients,

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THE TRIBUNE

EY TO OPEN GLOBAL OFFICE IN FREEPORT

The right combination in recruitment battles

THE Grand Bahama Port Authority (GBPA) yesterday said it has approved a business license for EY (Ernst & Young) Bahamas as the accounting firm is set to open a new office in Freeport. “We are pleased to welcome EY to Freeport,” said Ian Rolle, GBPA’s president. “GBPA has been working with EY to take advantage of the BH-1B Visa programme, which provides a significant opportunity for us to welcome more people to our city. “We are looking forward to the economic boost to local businesses including grocery stores, taxis, car rentals, the housing market, restaurants and more. The ripple effects as a result of EY’s new footprint in Freeport will be a positive addition to our business community.” The GBPA said itself and EY began talks in 2019, prior to Hurricane Dorian, regarding the benefits of operating in Freeport’s special economic zone as designated by the Hawksbill Creek Agreement. Freeport’s quasi-governmental authority said it had educated EY on the benefits of The Bahamas’ BH-1B visa, which allows them to use the city to support their clients’ needs across the region and worldwide. Besides attracting local Bahamian and international talent, EY was drawn to Freeport’s proximity to North America, its safe environment and technology infrastructure. EY has operated in The Bahamas for decades. Via its new Freeport location, the company will offer solutions using global talent while creating new opportunities for employment and training for Grand Bahamians. “Our Invest Grand Bahama promotional arm is dedicated to attracting these types of businesses that can benefit from our unique free trade zone. We will continue to do our part as we promote the best Freeport has to offer,” Mr Rolle said. With more than 300,000 employees globally, EY provides assurance, consulting, law, strategy, tax and transactions services to businesses, countries and entrepreneurs. Its presence in Freeport will boost demand for housing, food and beverage, entertainment, transportation and other economic sectors.

he battle between qualifications and experience has played out in the business arena for some time. I have met many persons who, with an immense amount of academic knowledge and qualifications, still struggle to secure employment. I am not sure if there is a clear answer to this age-old question, but there are good arguments on both sides. Choosing between experienced versus qualified candidates is often one of the most challenging decisions companies face during the recruitment process. Since the cost of higher education has risen, many people are rethinking their plans to head off to university even though it may be their only hope of starting on their chosen career path. So, do qualifications highlight the best candidate, or will real workplace experience carry more weight with employers? Do both attributes have their own merit and place in the job market? Education and Experience Education can be defined as the process in which intellectual and moral instruction are provided to students. Experience refers to practical involvement in an activity or event, or the knowledge and hands-on skills gained over time.

T

By

DEIDRE

BastiaN What is the difference between qualifications and experience? Qualifications show you have the necessary knowledge for the post, whereas experience proves you have worked in your chosen field. Qualifications A college/university degree was once a major factor in determining who got the job but, as more people have gained degrees, some employers have become less impressed and focus more on experience. Some businesses write job advertisements which specify that a particular certification or degree is needed for the

job. Different industries and jobs favour different attributes, so neither may be more important than the other as it depends on what works for the company. But remember: If you obtained your degree 15 or 20 years ago, especially in a technological field, it is almost irrelevant now. Work Experience Does your experience mean you will get the job? This is a good question, as one of the virtues people believe in is that experience is the most important thing in the interview process. But it all depends on the employer. Consider if you would want to hire a surgeon without the proper education and experience. Employers do favour candidates with good work experience, as it indicates they can work well in teams, alone, think quickly on their feet, and have the experience to adapt in a real-life environment. Experience simply implies that you can confidently hit the ground running. My message to school graduates entering the workforce with minimal experience is to work hard, as surely your time will come. When it does, you must always be ready. It is crucial that you become a participant in your own rescue. Continue climbing, training

and embracing opportunities because a timid lion never eats. Go for it. Every small step takes you closer to your goal. Make every attempt to forge ahead with the right mix of experience, qualifications or both, which gives employers a reason to look twice or even three times’ at your resume as it will show you are a well-rounded individual. The ideal candidate is “always” a good combination of theoretical knowledge and practical understanding. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game. NB: Columnist welcomes feedback at deedee21bastian@ gmail.com ABOUT COLUMNIST: Deidre M. Bastian is a professionally-trained graphic designer/brand marketing analyst, author and certified life coach with qualifications of A.Sc. B.Sc. M.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.

Exuma promoted to elite yacht brokers THE Bahamas is hosting 23 major yacht brokers on a fourday tour of the Exumas this week in a bid to promote the destination to high-end boating and yachting visitors. The trip, which ends today, has been organised by the Ministry of Tourism, Investments & Aviation in collaboration with ACREW,

its international partner for the yachting industry. Yacht brokers, along with other influencers such as charter brokers, captains, chief stewardesses and pursers, will have had the opportunity to explore Exuma and participate in the experiences that the island has to offer.

Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, and Latia Duncombe, acting director-general of tourism, hosted the visiting brokers at a cocktail and dinner reception held on Monday, 20 June, at 7pm at February Point Resort. Mr Cooper said: “We are pleased to have 23 top brokers

from the US, Europe and the United Kingdom, who are all here to experience the beauty, diversity and hospitable people of Exuma. We are foreseeing by 2025 [that] there will be a 5 percent growth in overall yacht

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THE TRIBUNE

Thursday, June 23, 2022, PAGE 3

GOV’T DRAFTING CARBON CREDIT EXCHANGE LAW

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE Government is developing legislation to establish a carbon credit exchange in The Bahamas to further boost its ambitions to make this nation “a global centre” for the emerging industry. Ryan Pinder, the attorney general, told the Senate during his Budget debate contribution that his office is working on the Carbon Exchange Bill 2022. He added: “To advance the monetisation of carbon credits, we will be bringing to Parliament specially-drafted legislation to establish a carbon credit exchange in The Bahamas. “The desire is to create a regulated framework that will establish The Bahamas as the regional, and hopefully the global, centre for the trade in carbon credits. We will participate in the

vertically integrated carbon credit marketplace. The Bahamas a leader in the world on this issue. As for the “monetisation” itself, Mr Pinder added: “We are also working to ensure that our efforts in blue carbon credits can start to be monetised this 20222023 fiscal year. We are on track to start our scientific verification exercises and monetisation of our blue carbon credits.” These credits will be entered into a databan until they are ready to be monetised. The Government has already identified $300m in coastal assets it is seeking to offer on the carbon market. The Climate Change and Carbon Market Incentives Bill tabled in April was the first step in securing a carbon credit payment system for the country. Mr Pinder said: “The development of a leadership position in carbon credits is not merely to provide a

RYAN PINDER framework for revenues to the Government, but it creates a new industry that will be vertically integrated and will present opportunities for Bahamians to participate in every element of the new frontier. “Bahamian scientists will be trained in the technical components identifying blue carbon sequestration, Bahamian financial services professionals will have opportunities in the new capital markets created. The leadership position of The Bahamas in this area

will positively contribute to economic diversification.” The global carbon credit market focuses primarily on “green” carbon credits that are tied to forests and grasslands. The Bahamas aims to be one of the first countries to begin selling ocean “blue” based credits. Elsewhere, Mr Pinder said The Bahamas plans to overhaul its aggregate mining regulatory framework given the extensive fill that is generated by marina excavation and other activities. “A long overdue piece of regulatory reform has to do with mining of natural resources in The Bahamas. The approach now is an industry-led approach without a modern regulatory envelope to ensure best international standards are being followed in natural resources mining,” he added. “We are a country where there is foreign direct investment in real estate development projects; many

of these require mining. We also have commercial aggregate mining. We will be presenting an international best practice benchmarked legislation to oversee mining in The Bahamas, another fulfillment of” the Davis administration’s election manifesto. As for efforts to bring The Bahamas into full 100 percent compliance with global anti-money laundering standards, Mr Pinder said: “Over years spanning multiple administrations, The Bahamas has fought to be compliant in international financial regulation, so much so that there has been concern raised across multiple quarters about over-regulation and resulting challenges of doing business. “It’s a difficult balance. The fact is The Bahamas always must punch above its weight in this new era of international regulation. Recognising this, when we debated in April, I updated

the Senate that The Bahamas now is compliant or largely compliant in 38 of the 40 recommendations [set by the Financial Task Force] and removed from the EU grey list a couple months prior. “Since that time, I am pleased to advise the timely submission of our re-rating of the final two of the 40 recommendations - recommendation eight, addressing not-for-profits, and recommendation 15, addressing the effective regulation and supervision/monitoring of virtual asset services providers. “This required some legislative amendments on financial services’ notfor-profit and digital asset legislation... We hope that come the plenary in the fall that our submissions will be favourably considered and we will be compliant or largely compliant in 40 of the 40 FATF recommendations.”

One-third of dormant taxi plates ‘rescued’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net ONE-third of the 90 dormant taxi plate holders have paid-off arrears owed to the Government within 48 hours of being warned they would otherwise lose these assets. Ryan Pinder, the attorney general, told the Senate at the end of his Budget debate contribution that 30 owners had raced to meet good on their obligations after the Ministry of Transport and Housing issued a Monday statement advising that all dormant taxi plates will be recalled. The minister, reading a press release from the ministry into the Senate record, said: “The practice

of renting plates must end. Following the conduct of an inventory assessment of taxi plates in New Providence, it was noted that some 90 taxi plates were inactive. “The publication of a public notice by the Road Traffic Department was a proactive decision to bring order and accountability to the registration and distribution of taxi plates. It should be noted that taxing plates will only be recalled in accordance with the law. “The Ministry of Transport and Housing wishes to advise members of the public that the lifting of the moratorium on the issuance of new taxi plates was not executed in secret. Consultations were held with numerous stakeholders, including the Bahamas Taxicab Union (BTCU), with a view to achieving

the Government’s goal: The modernisation of the transportation sector.” Revealing that the Government’s dormant plate warning has produced immediate results, Mr Pinder added: “I’m advised that upon the notice some 30 dormant plate owners came in, satisfied their arrears and kept the plates.” The Ministry of Housing and Transport, in its statement, said it was seeking to “bring long overdue changes to the distribution of taxi plates” as part of efforts to modernise the transportation sector. The recall of dormant, or rented, taxi plates, was identified as a key part of this effort as it sought to place all these assets “under the control” of the people who operate them.

PINDER'S CUSTOMS BROKERAGE LTD. JOB VACANCY LOGISTICS COORDINATOR Pinder's Customs Brokerage Ltd. invites applications from suitably qualified persons for the post of Logistics Coordinator. The Logistics Coordinator is expected to: Liaise with clients, Bahamas Customs, and shipping lines to manage import & export shipments. The Logistics Coordinator will also be responsible for analyzing shipment documentation to ensure accuracy with item descriptions, unit prices, and Bahamas Customs requirements. The Logistics Coordinator will also communicate with PCB's internal teams to make certain shipments are processed and delivered according to company standards. The responsibilities of the Logistics Coordinator include but are not limited to the following: • Coordinate client shipments through the import/export process. • Liaise with Bahamas Customs and other Government Agencies, Shipping Lines, and other parties regarding client shipments. • Process and organize documents electronically with digital document system. • Management of clientele personal effects for set-up, break-down, or storage. • Keep abreast with Bahamas Customs Regulations, and Procedures as it pertains to imports and the various categories. Preferred Education: , A minimum of an Associate of Science Degree in Business, or equivalent. Experience: • Minimum of three (3) years' work experience in a high impact customer service industry. • Minimum of three (3) years' work experience in Logistics or Shipping fields. Competencies: , Excellent written and verbal communication skills. , Ability to plan, multi-task, and manage time effectively. , Excellent analytical, interpersonal, and computer skills. , Proficient in the use of Microsoft Office Products, Adobe Acrobat. • Knowledge of the customs brokerage and shipping industry. Interested and qualified candidates are invited to forward their curriculum vitae electronically to hr@pinderscustoms.com no later than June 30, 2022.

Thus signalling its intent to stop the long-standing practice of renting out taxi plates, which has seen the owners lease them to drivers at exorbitant rates, the ministry added: “For decades, hundreds of industry participants have been unable to own taxi businesses as licences have been under the control of a small group of persons, some of whom inherited plates. The Government believes in supporting business ownership and the ability of taxi drivers to own their businesses.” Wesley Ferguson, the Bahamas Taxi Cab Union’s president, told Tribune Business: “All of this stemmed from taxi drivers operating in the ‘estate of’ someone. Under previous comptrollers of the Road Traffic Department

there were a lot of dormant plates; there were over 200 of them. It was much more than 90 dormant plates, much more than 90. “The Comptroller reserves the rights to issue those plates because they have already been gazetted, and there was nothing wrong with that, but what they did was they put the taxi plates in the category of ‘estate of’ and that shouldn’t have been done. If the Comptroller would have done due diligence on the plates, and where they originated from, there wouldn’t be this mess we have now. “They were supposed to put them in the papers, and then they were to regularise these plates by just allowing these people who think that they have a claim to a dormant plate, whether it

is a family member, son or daughter, and upon investigation if they were satisfied then that plate should have been turned over wholly in that person’s name,” Mr Ferguson added. “But you found that some of those people who got dormant plates from the comptroller in the ‘estate of’ were faced with a dilemma in the event of an accident, or even to do certain transactions on behalf of that plate, because the plate was not in their name and only on the business license as the person who is operating the plate. If they were to go to an insurance company, the insurance company would not pay them because the payment cheque is supposed to go to the person who owns the plate.”

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THE TRIBUNE

AG UNVEILS AMBITION FOR ‘NEAR SHORE DELAWARE’ FROM PAGE ONE “a project team” featuring both public and private sector representatives that will be appointed to come up with recommendations for the transformation of The Bahamas’ companies incorporation and insolvency/winding-up regimes. Among the laws targeted for reform is the Bankruptcy Act 1870, now 152 years-old. “Due to the rapidly evolving domestic and international economic and financial services environments, there is a clear need to improve the current law pertaining to the registration of companies, insolvency and bankruptcy in The Bahamas,” Mr Pinder told the Senate yesterday. “In this vein, the Government of the Commonwealth

of The Bahamas, led by the Office of the Attorney General, has set a goal to revise the relevant law inclusive of the Companies Act 1992; the International Business Companies Act 2000 and related legislation; and the Companies (Winding Up) (Amendment) Act; the International Business Companies (Winding Up) (Amendment) Act; the Companies Liquidation Rules 2012, 2013 and the Bankruptcy Act 1870. Yes, I said 1870.” The Attorney General continued: “Terms of Reference have been finalised and we are prepared to appoint a project team made up of public and private sector individuals formed to overhaul the Bahamas’ registered companies, insolvency and bankruptcy legislative regimes.

“The goal now is to ensure that these relevant new proposed laws remain current, modern, competitive and reflect international best practices generally. These reforms have the ability to materially change The Bahamas’ commercial offering internationally and provide another boost to our financial services and commercial structuring markets. We look to become the near-shore Delaware for corporate structuring and reorganisation.” The term “near shore” refers to providing services to, and attracting companies from, jurisdictions that are in relative close proximity to the US. This suggests that Mr Pinder’s focus is on the Western Hemisphere, and specifically Latin and Central America and the Caribbean, especially given

that the Bahamian financial services industry has established a strong presence with its existing wealth management services. Craig A. ‘Tony’ Gomez, the Baker Tilly Gomez accountant and managing partner, told Tribune Business that setting out The Bahamas’ ambitions to match a financial services “flagship” was the correct move in signalling the standards this nation is aspiring to reach. The US state has created a strong presence in the global financial services market, and he added: “It’s always good to compare and align yourself with somebody close to you who’s performing well. Delaware has become a flagship for those of us in the financial services industry. The comparison with Delaware as

EXUMA PROMOTED TO ELITE YACHT BROKERS FROM PAGE TWO business, proving this event to be a timely one for all stakeholders. “As The Bahamas is officially open for business, we view partnership with ACREW as key to a successful economic rebound,

providing exposure for our 16 major islands.” ACREW is an organisation focused on creating connections between leading charter brokers and destinations that can provide high-end experiences for yachting clients. It previously held a familiarisation

trip for yacht brokers to several Family Islands and now, for its second edition, has chosen Exuma. Mrs Duncombe said: “The Ministry of Tourism is delighted to share in such a momentous occasion with ACREW and visiting yacht brokers. As

we navigate this post pandemic era, we are poised for an influx of maritime visitors to our waters to have an authentic Bahamian experience. We want all brokers, captains and chief stewardesses to explore not only the Exuma Cays but also Exuma’s mainland for

a near-shore jurisdiction whose standards we must equal and surpass is really appropriate. “It’s a stand-out jurisdiction and we should be able to compare ourselves favourably in that regard. It’s simply a comparison of standards. The comparison should be made with international leaders; that we stand as equals to Delaware and other jurisdictions around the world.” Mr Gomez said an overhaul of The Bahamas’ insolvency and windingup regimes is warranted. “There’s always new trends in the interpretation and application of insolvency law on a regulars basis,” he added. “The challenge I find with a lot of what we do is that it’s so easy to incorporate a company, but it’s extremely difficult

to wind-up and unwind a

a true understanding and appreciation of what we have to offer.” Highlights of the yacht brokers’ itinerary included feeding the iguanas; swimming with the pigs; a tour of Staniel Cay Yacht Club; lunch at Lorraine’s in Black Point; Dive Thunderball Grotto; and a catamaran excursion to Stocking Island for eats, entertainment, games, a

live DJ and feeding the stingrays. The Ministry plans to organise similar tours for yacht brokers in February 2023 and June 2023, focusing on Eleuthera and Abaco, with the continued support of the Association of Bahamas Marinas (ABM) and ACREW.

company. “So the laws and regulations on winding-up a company

certainly

have

to be modified. I’ll give you an example. The last time

we

amended

Companies (Amendment)

the

Winding-Up Act

was

2011. It’s now 11 years later. The insolvency practitioners’ rules were drawn up in 2012; that’s ten years ago. The Companies’ Liquidation Rules was 2012. “The world has gone a lot faster than that over the past decade. There is a critical need to upgrade this business platform.”

February Point Resort Estates in picturesque Great Exuma is seeking applications for the following positions: -Landscaping Manager -Maintenance Manager Qualified persons are asked to send their resumes to the following email address:

teneeshia@februarypoint.com

THE MINISTRY of Tourism, Investments & Aviation hosted an appreciation reception for yacht charter brokers on June 20, 2022, at February Point Resort, Exuma. In attendance were deputy prime minister Chester Cooper, Senator Randy Rolle, the ministry’s global relations consultant; Latia Duncombe, acting director-general, Ministry of Tourism; Dr Kenneth Romer, deputy director-general; Carla Stuart, senior director, Ministry of Tourism; Christian Palacios, Exuma island administrator and other government officials. Photo:Kemuel Stubbs/BIS

THE TRIBUNE

Thursday, June 23, 2022, PAGE 5

CANNABIS ADVOCATE HAILS DUAL TRACK LEGISLATION PLAN By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A MEDICAL marijuana and industrial hemp advocate yesterday praised the Government for its dual track approach in seeking to legalise through upcoming legislation. Terry Miller, chairman of the non-profit Bahamas Cannabis Research Institute (BACARI), told Tribune Business that the decision to keep both separate was beneficial as he is more keen on industrial hemp as a commercial venture for Bahamians. He spoke after Ryan Pinder, the attorney general, told the Senate during the Budget debate that the Government will provide separate frameworks for the regulation of medical marijuana and industrial hemp. Previously, the Government had only appeared to focus on medical marijuana regulation, leaving proponents of industrial hemp concerned and

frustrated that their chosen product may miss out. But Mr Pinder affirmed: “We will advance a comprehensive suite of legislation on the regulation of cannabis, creating a new agri-business industry in The Bahamas. This legislation is internationally benchmarked against the countries around the world in the industry. “The framework will be for the regulation of the medical cannabis industry from the farm to the border, and will also provide a separate regulatory framework for industrial hemp, for wellness products and for pure industrial uses such as clothing, rope and building materials made from hemp. We will also provide a framework for the de-criminalisation of possession of small amounts of cannabis products.” Mr Miller responded: “What he said made me wonder if he understood what he said. He said there will be the decriminalisation of small amounts of marijuana.” He argued that

TERRY MILLER this needs to be “thought through more carefully” because the Government could risk “increasing the black market”.

Mr Miller’s reasoning is that if the Government were to decriminalise marijuana without full-scale legalisation or “wholesale

regulation” of the plant, then persons that possess wholesale quantities will still be breaking the law. And those who want small quantities will still have to buy marijuana from these black market operators. Mr Miller said: “We definitely wanted the medical marijuana part of it, but since they are going to do both medical marijuana and industrial hemp, then it is going to be comprehensive. They should be moving together and that’s fine because when you think of medical marijuana and the rest of the world having access to the best medicine that’s helping their people, then you can’t deny your own people access to that. People don’t obey stupid laws. People break stupid laws.” The Government has been reviewing and benchmarking to its legal reforms to existing Canadian legislation in an attempt to craft The Bahamas’ own version. Mr Miller said: “Canada is a good benchmark to a degree. We need

REAL ESTATE TRANSITION BOOST ON VAT SAVINGS FROM PAGE ONE on an almost-annual basis given how frequently the Government alters real estate-related taxation. As a result, this newspaper yesterday asked Mr Halkitis whether deals in process now, but whose conveyances are completed and presented for stamping after July 1, will attract the present 10 percent or the new regime’s lower rates. He replied via What’s App message: “When the documents are presented for stamping after completion of the transaction is the determining factor.” Asked to clarify that this meant live transactions, which close after the 2022-2023 fiscal year begins and are brought forward for stamping and VAT payment then, will be taxed under the new structure unveiled in the Budget, Senator Halkitis said simply: “Yes.” Mr Wilson, the Ministry of Finance’s financial secretary, echoed Mr Halkitis in saying: “Once it comes into effect they pay the lower rate. It [the VAT] becomes due and payable once they present the document. It’s not the sales agreement; it’s the date on the conveyance. It’s the date when that’s presented; that’s the most important date.” Nikki Boeuf, the Bahamas Real Estate Association’s (BREA) president, yesterday told Tribune Business that the transition

provisions unveiled by the Government were “positive for the clients in question because they get the better rates” on transactions valued between upwards of $100,000 and below $1m. When past real estaterelated tax changes were made in the Budget, she explained that “anything that was in court you had to usually apply to let them [the Government] know it was closing any day now”. She added that complications could easily arise if the closing period dragged out beyond a certain date, and said “it’s always been a little loose in that regard” over how the transition from one tax regime to another is managed. The Government is also introducing a tiered scale for VAT payable on property transactions below $1m. While persons buying property valued at less than $100,000 will still pay the current 2.5 percent VAT rate on the sale/purchase, those acquiring at a price between $100,000 and $300,000 will now pay 4 percent. Non-first time buyers will face a 6 percent VAT rate where the property value falls between $300,000 and $500,000, and 8 percent between $500,000 and $700,000. Properties valued at between $700,000 and $1m will attract 9 percent. MIke Lightbourn, Coldwell Banker Lightbourn Realty’s president, told

Tribune Business that the potential tax savings from closing and paying the due VAT after July 1 represent “a hell of a difference in what people are going to pay”. As an example, he said the parties involved in a $200,000 transaction will now incur an $8,000 VAT liability at 4 percent when, under the regime that will end in a week’s time, it would have been $20,000. This results in a $12,000 saving which Mr Lightbourn described as “great news”. He added: “It’s a saving for a lot of people having a touch and go time to put funds together to complete a purchase. The minimum you will save is 1 percent. It represents a big savings, particularly to Bahamians. “It’s very important that was clarified, and any conveyance presented after July 1 they pay at a lower rate on a transaction between $100,000 and $1m.” Meanwhile, David Morley, Morley Realty’s principal, lamented that successive administrations too often only looked at how to implement Budget reforms and tax-related changes once the Government’s annual financial plan passed both the House of Assembly and the Senate. This left a very narrow in which to inform the private sector on how it will work. He added that, historically, Bahamian governments have always treated real

estate sales agreements signed prior to July 1 as attracting the VAT rate and treatment in force at that time rather than letting it slide over into a new fiscal year - thus indicating that

this year’s transition may break with the past. Attorneys have traditionally rushed real estate transactions to a close before July 1 because, more often than not, the Government has raised

to devise our own based on not only Canada, but there are several others. We need to look at Jamaica and not make the mistake they did.” The “mistake” that Jamaica made in legalising its cannabis industry was that it allowed too many foreign companies to come in and compete with local farmers, putting many of them out of business or forcing them into co-operatives with and watering down Jamaican ownership in the process. Mr Miller said: “We need legislation that also protects our young people. That is the most important thing that must be taken into consideration with this new legislation. We need to ensure that it becomes more difficult for underage people to get access to marijuana. It is also critical that a certain amount of money is set aside for treatment and preventative education.” the tax burden for their clients. However, this year the VAT rates for transactions between $100,000 and $1m are being lowered, thus meaning there is an incentive to delay completion and the presentation of documents for stamping into the new 2022-2023 fiscal year.

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THE TRIBUNE

CAPITAL BACKS BAHAMAS: ‘GET PAST’ 7.2M RECORD FROM PAGE ONE

Bahamas was one of seven Caribbean nations that each attracted 10 percent of the vote for the tourism investment destination they were most bullish on. “The Bahamas ranks very highly for financing for touristic, hospitality and leisure industry projects,” Mr Gomez told this newspaper of the survey results. “Financiers are pretty high on The Bahamas. We are second for non-banks on financing... “I think it’s very favourable but, more so, it’s encouraging. There are some things we’ve still got to do. We’ve got to promote The Bahamas. We’ve got to break the visitor numbers

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we attained before COVID19. I think that was 7.2m. We’ve got to get past that. “We’ve got to make sure we get past those numbers as we need to grow our destination. We certainly have the financiers on our side. The prospects are good. We just have to see how attractive they are to local and international business persons.” Lenders interviewed by Baker Tilly for its survey cited The Bahamas’ US proximity and one:one exchange rate peg with the US dollar as key factors in why they were so positive on this nation’s investment prospects. One said: “Bahamas and Turks & Caicos proximity to the US and US dollar currency.” Another added: “Anguilla, Turks & Caicos and The Bahamas knowledge of the markets and growth prospects.” The findings provide a sound platform for the

central element in the Government’s post-COVID economic and fiscal revival plan, which is heavily focused on attracting greater levels of foreign direct investment (FDI) to stimulate activity, job creation, tax revenues and foreign exchange earnings. Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA), told Tribune Business of the Baker Tilly findings: “Not having had sight of the report, it sounds like an excellent recommendation and of confidence in the destination of The Bahamas.” The Bahamas attracted 7.2m total visitors in the last pre-pandemic year of 2019, some 1.8m of whom were higher-spending stopover visitors. However, Mr Gomez said that to turn investor/lender confidence into reality it still has to work on several

EBAJ-iA. i,.:

issues within its control in an economic climate dominated by soaring inflation, surging global oil costs and post-COVID supply chain backlogs and bottlenecks. With the threat from catastrophic storms also ever-present following the Atlantic hurricane season’s start, Baker Tilly’s Bahamian managing partner said controlling crime and ensuring visitors become repeat customers via world-class experiences during their vacations were critical for sustainable success. And, with the COVID-19 pandemic starting to ease, Mr Gomez said it was vital that The Bahamas “reduce the paperwork” needed to enter and leave the country now that entry testing for vaccinated travellers and the Health Travel Visa have been eliminated. Having encountered this as a frequent traveller himself, he acknowledged the deterrent effect it has for international travellers. “What we have to do as a country is come up with an automated way for travellers to fill out their travel card electronically while in the US, so that by the time they appear in The Bahamas their Immigration

forms are completed online,” Mr Gomez said. “We build the data and take out the paperwork for persons to travel to The Bahamas.” He added, though, that The Bahamas’ proximity to the market responsible for generating 90 percent of its visitors, the US, and location far from current war zones, potentially gave it a further competitive advantage at a time when travellers were still somewhat reluctant to undertake expensive long-haul travel due to the cost involved and potential safety concerns. “People want to travel to safe destinations, and find the Caribbean attractive and The Bahamas even more so, because they are close to home,” Mr Gomez said. “Although these are inflationary times for bank and non-bank lenders, these entities still have an abundance of cash and are looking for opportunities to spend, and spend outside the stock market and stock exchanges. What is number one? Real estate.” Despite concerns about the ease of doing business in The Bahamas locally, he added that the extensive legal, accounting and banking industries already

present in this nation “open the door wide” for potential tourism industry lenders. And,l while COVID-19 restrictions had made travel difficult, most persons had learned to adapt. “There’s a pent-up demand. Many travellers want to get out of home, and feel it’s time to go on the road. While inflation will take its toll, as it often does in times like this, all we see is a number of things are going to happen with pent-up demand and people wanting to leave now,” Mr Gomez said. The Baker Tilly survey revealed that total confidence among Caribbean tourism lenders is at an all-time high. With optimism for 2022 hitting a new record for a survey that began in 2009, the report said: “Furthermore, 88 percent of our non-bank respondents intend to make new investments in Caribbean tourism projects over the next 12 months. “Fifty percent say their deal flow and pipeline is stronger than before COVID. Eighty percent of banks have a deal pipeline that is at similar levels to before COVID or stronger than before COVID.”

SECURITIES COMMISSION OF THE BAHAMAS JOB OPPORTUNITIES The Securities Commission of The Bahamas, a statutory agency responsible for the oversight, supervision

and regulation of the Investment Funds, Securities and Capital Markets, in or from The Bahamas, as well

as the supervision of Financial and Corporate Service Providers, invites applications from qualified

individuals to fill the following positions:

SENIOR OFFICER- EXAMINATIONS DEPARTMENT OFFICER- EXAMINATIONS DEPARTMENT APPLICATIONS:

Full details of the job opportunities, guidelines for the submission of applications and general information

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THE TRIBUNE

Thursday, June 23, 2022, PAGE 7

UNDERWATER TREASURE: GOV’T SEEKS ‘MAJORITY’ FROM PAGE ONE

planned legal reforms will “reverse” the present formula whereby the proceeds from underwater treasure salvaging in Bahamian waters are split 75/25 between the explorer and the Government. The explorer presently receives the majority three-quarters share, but the Davis administration intends to alter the Antiquities, Monuments and Museums Act and its accompanying regulations to “rebalance” this in favour of the Government. Mr Pinder said: “The Government is seeking to update The Bahamas’ legislation relative to underwater cultural heritage by amending the Antiquities, Monuments and Museums Act (AMMA) along with amendments to the associated regulations. The proposed amendments specifically relate to licensing requirements, costs, timeframes, geographical areas, and the current government licensing revenue split with respect to salvage licensees. “Right now, the Government gets 25 percent of the assets that people dive for and dig up. We will reverse that. We will get the majority interest in cultural assets underwater in this country.” Mr Pinder’s remarks could have been interpreted as suggesting that the present 75/25 developer weighted formula will be reversed so that the Government now receives three-quarters of any financial proceeds. However, the Attorney General subsequently clarified to Tribune Business that the revised split has yet to be determined by the Davis Cabinet. “Cabinet would decide what the actual split will be, but we anticipate that it will be the majority position,” Mr Pinder told this newspaper. “It will be rebalanced in favour of the Government. That goes before the Cabinet. The Cabinet will decide the actual split.” Tribune Business sources, speaking on condition of anonymity, had told this newspaper within the past week that the Davis administration was seeking to reverse or flip the present formula such that the Government (Public Treasury) would receive 75 percent of all underwater exploration proceeds. However, it was unable to confirm this until Mr Pinder’s Senate address yesterday, and it would appear that the new formula is not yet set in stone. The Attorney General’s presentation also sheds new light on why Wayne Munroe, minister of national security, would describe existing underwater exploration licence arrangements as “unsatisfactory”. “It’s always unsatisfactory when somebody comes and says this is yours, without any sort of way to audit, confirm or evaluate whether what they’re giving you is what you’re truly entitled to,” Mr Munroe said last week. His comments indicate that the issue has already been discussed at the highest levels of government, either at the full Cabinet or a Cabinet committee or sub-committee. Many Bahamians will likely applaud retaining the bulk of revenues/profits generated from underwater exploration for the public’s benefit, given that recovered assets represent this nation’s cultural and historical patrimony. The Government, too, is probably also viewing it as an enhanced source of revenue for the Public Treasury at a time of economic and fiscal crisis. However, the Government taking the majority share of any proceeds raises questions about whether underwater treasure exploration in Bahamian waters will remain commercially viable based on figures and percentages released by Allen Exploration earlier this week. For it would mean that the explorer is taking 100 percent of the risk, and is fully responsible for all investment, but only receives a minority share for all its efforts. “Artifacts are divided only after an inventory is provided and agreed upon, and independent appraisal

is performed. The Bahamas receives 25 percent of the gross value of all of the agreed upon artifacts,” Allen Exploration said then. “The remainder goes to the licence holder, who is responsible for paying 100 percent of the costs incurred to search for, recover, conserve, store, secure and curate the artifacts. “The license holder’s final share of 75 percent of the gross value quickly becomes five or 10 percent after these expenses are applied and deducted. Despite what some people may wish to believe, finding artifacts underwater is not a lucrative business. It is more like owning a boat, which has been accurately described as ‘a hole in the water that you throw money into’.” If the Government takes the majority gross value share, that 5-10 percent will likely be eliminated. Allen Exploration’s Mr Concannon, responding to concerns that the Government may alter the formula so it receives the 75 percent share, told Tribune Business yesterday: “Anybody suggesting that the Government should take a 75 percent share of the gross does not understand what it takes to find, recover and conserve the artifacts sitting in front of them.” “If a 75/25 split is the new law, Allen Exploration

will stop searching for anything underwater. Period. Mr Allen is not in the business of turning money into heat by lighting dollar bills on fire.” Mr Concannon said that while there had been “general discussions” with the Government on the split, there had been no mention of a total flip. “We would be happy to have a full and frank conversation with the Government about the economics of finding, recovering and conserving artifacts from underwater. We have had some general discussions about the share percentages shifting, but not in detail, and nobody has ever said anything about reversing the split to 75/25,” he added. “Searching for - and recovering artifacts underwater costs tens of thousands of dollars every single day. The Government knows this because we have shared those specific figures with members of the Government.” No dollar value has been assigned to what Allen Exploration has recovered already from the Nuestra Senora de la Maravillas, the sunken Spanish treasure galleon that some have described as “the most valuable shipwreck in the Western Hemisphere”. Mr Concannon said: “Value is assigned based on a point system agreed upon by the parties.”

While it has been reported that Allen Exploration has found items such as silver and gold coins, and an emerald-encrusted broach along with an 11-foot long gold chain, Mr Concannon said any value assigned to finds such as this would more often than not be exaggerated by other explorers looking to bait investors into the process. “Allen Exploration does not have outside investors,” he added. Tribune Business understands that Allen Exploration’s licence, first issued by the Minnis administration, has already been renewed on its existing terms, so it is unclear how any legislative changes will impact its activities until the renewal comes around again. However, several sources speaking on condition of anonymity said that the Government’s plans to take a majority share of underwater exploration proceeds would undermine efforts to properly licence and regulate such activities. “It sends it underground again,” one added. Another said: “That is not going to work. It will drive everything underground and what you’ll be attracting

is the true pirates. The real issue about this is self-governance. Florida gives people licences and permits, and it’s the same 75/25 split [in favour of the developer]. They have strict reporting requirements. This is only going to attract the baddies. The issue is regulation.” The Bahamas, and successive administrations, have long struggled to get to grips with underwater exploration and treasure salvaging within this nation’s territorial waters - hence the longstanding moratoriums on new licences. Lacking the necessary expertise and resources to conduct proper oversight, together with the required regulatory regime, The Bahamas has allowed many of these sites to be pillaged and ransacked by unauthorized foreign salvors. This has resulted in many Bahamian artifacts appearing at overseas auctions and sales without this nation receiving a cent in benefits for them. But, while underwater exploration did not merit much mention in the two major political parties’ election manifestos, the sector holds much-needed

economic and fiscal potential for The Bahamas should it get it right at a time when the country needs every cent it can get post-COVID-19. One industry source, asked about the industry’s potential value to The Bahamas, simply responded: “Billions”. They added: “The second and third most valuable wrecks in the entire western hemisphere are located off Grand Bahama. “It would be an entire industry. It has the ability to effectively put Freeport back on the map. You’re talking about billions in artifacts, and I mean billions. You’ve got from conservation of artifacts to research to study to inventory. The question is where is the transparency and the accountability.” Another added: “People have been coming into our waters for decades and pilfering this. They’re coming in, taking it and putting it on the US market. Bahamian officials have shared how things are being sold in the US that are found in Bahamian waters. The last [Christie] administration put a moratorium on this to try and fix it.”

PAGE 8, Thursday, June 23, 2022

THE TRIBUNE

AG HAILS ‘GREATEST EVER OUT ISLANDS INVESTMENT’ FROM PAGE ONE

development of sustainable food production to improve self-dependence and exports.” Turning to Family Island agriculture, he said: “This cultivation centre at Hatchet Bay will be a model one-stop shop for agri-business that will be rolled out nationwide in our agricultural centres. Ensuring this infrastructure is in place ensures that agriculture develops in a full circle environment, from the farm to the table and on the shelves in the store. “We also note that farmers and any growth will require government

support. Countries the world over make it a practice to subsidise agriculture to ensure that they have an element of food security. We have made provisions in this budget to put together a viable concessionary regime for agriculturalists in specifically-identified food security areas. “For example, we as a government believe that poultry can provide an almost immediate catalyst to stimulate food production in the country. We have a plan, detailed in part in the Budget, to attract the best technology and processes to develop a full-scale poultry

production operation. This includes a series of concessions that will be available,” Mr Pinder continued. “These concessions include land concessions (BAIC and the Ministry of Agriculture have thousands of acres for agricultural development) as well as electricity rate concessions to producers and direct cash subsidies, as found in this Budget, for the support of poultry farmers and producers. In this Budget, we are allocating $500,000 in direct support for farmers.”

Asian stocks mixed after Wall St declines on growth worries

Wall Street's benchmark S&P 500 index lost 0.1% after swinging between a gain of 1% and a loss of 1.3% during the day. "The market now accepts recession is a risk, having been in total denial," Michael Every of Rabobank said in a report. The Shanghai Composite Index rose 0.6% to 3,285.99 while the Nikkei 225 in Tokyo sank 0.3% to 26,059.39. The Hang Seng in Hong Kong gained 1% to 21,209.09. The Kospi in Seoul retreated 1.5% to 2,308.20 while Sydney's S&P-ASX 200 rose 0.2% to 6,523.50. New Zealand, Bangkok and Singapore advanced while Jakarta fell. Central banks in the United Sates and Europe are trying to stop inflation that is running at four-decade highs. Investors worry that will derail global growth. Powell, speaking before the Senate Banking Committee, acknowledged the risks but said it is "absolutely essential" that the Fed restore stable prices. "We now anticipate the most aggressive and synchronized tightening cycle" by global central banks since the 1980s, said Jennifer McKeown of Capital Economics in a report. "The key question now is not whether central banks will slam on the brakes, but what might stop them?" The S&P 500 declined to 3,759.89. Stocks in the index were evenly split between gainers and decliners. The Dow Jones Industrial Average gave up 0.2% to 30,483.13. The Nasdaq

composite slipped 0.2% to 11,053.08. The S&P 500 is in a bear market, or down more than 20% from its Jan. 3 peak. It has fallen in 10 of the past 11 weeks. Last week, the Fed raised its benchmark rate by three quarters of a percentage point, three times its usual margin and the biggest increase in nearly three decades. Fed policymakers say they anticipate more rate hikes this year and next and at a quicker tempo than previously forecast. They say the central bank's key rate should reach 3.8% by the end of 2023, its highest level in 15 years. Surging prices have soured consumer sentiment in the United States, the world's biggest market. Retail spending is sagging. Inflation fears have been aggravated by a spike in prices of oil, wheat and other commodities due to Russia's attack on Ukraine. Oil prices fell sharply for a second Wednesday, suggesting traders anticipate weaker demand as economic activity cools. Benchmark U.S. crude tumbled $2.68 to $103.51 per barrel in electronic trading on the New York Mercantile Exchange. The contract declined $3.33 on Wednesday to $106.19. Brent crude, the price basis for international trading, retreated $2.43 to $106.22 per barrel in London. It sank $3.12 the previous session to $108.65. The dollar fell to 135.34 yen from Wednesday's 136.28 yen. The euro rose to $1.0570 from $1.0566.

facilitate the Government in making immediate and significant investment in Family Island infrastructure through strategic privatepublic partnerships (PPPs) where Government investment can be leveraged with private sector success. “We also propose to leverage aviation-related revenue, inclusive of to the extent permissible overflight fees, to create a fund for aviation infrastructure, which would be another sub-fund of the National Infrastructure Fund. We would then be in a position

By JOE MCDONALD AP Business Writer ASIAN stock markets were mixed Thursday after Wall Street edged lower

to co-invest with professional airport developers and operators to properly invest in the logistics and tourism hubs of our family of islands, our airports.” The Bahamas is on track to collect between $28m and $32m in overflight fees during the regime’s first year in operation, Senator Michael Halkitis, minister of economic affairs, said in an earlier hearing. However, given that these revenues were supposed to finance the Civil Aviation Authority and other aviation-related agencies and infrastructure, ending annual multi-million dollar

amid fears higher interest rates will chill global economic growth. Shanghai and Hong Kong advanced, while Tokyo and Seoul declined. Oil prices

taxpayer subsidies to them, it is unclear how much money will be left over for the Out Islands. Still, Mr Pinder added: “In all examples under the National Infrastructure Fund, the Government are real capital investors in the projects. Return for investment. We look to expand this concept in areas such as renewable energy investments; growth fund for the Family Islands where government promotes the development of needed infrastructure supporting the sustainable tourism segment, and a food security fund to promote

fell more than $2 per barrel to near $100. Federal Reserve Chair Jerome Powell, talking to members of Congress, said Wednesday that while the

U.S. central bank doesn't need to "provoke a recession," one is a possibility due to rate hikes to cool inflation that is running at four-decade highs.

A CURRENCY trader watches monitors at a foreign exchange dealing room in Seoul, South Korea, Thursday, June 23, 2022. Asian stock markets were mixed Thursday after Wall Street edged lower amid fears that higher interest rates will chill global economic growth. Photo:Lee Jin-man/AP

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THE TRIBUNE

Thursday, June 23, 2022, PAGE 9

Powell: Fed aims to avoid recession but says it’s possible By CHRISTOPHER RUGABER AP Economics Writer FEDERAL Reserve Chair Jerome Powell sought Wednesday to reassure the public that the Fed will raise interest rates high and fast enough to quell inflation, without tightening credit so much as to throttle the economy and cause a recession. Testifying to the Senate Banking Committee, Powell faced skeptical questions from members of both parties about the Fed’s ability to tame inflation, which has surged to the top of Americans’ concerns as congressional elections near. Democrats wondered whether the Fed’s accelerated rate hikes will succeed in curbing inflation or might instead just tip the economy into a downturn. Several Republicans charged that the Powell Fed had moved too slowly to begin raising rates and now must speed up its hikes. Powell acknowledged that a recession is possible as the Fed pushes borrowing costs steadily higher. “It’s certainly a possibility,” he said in response to a question from Sen. John

Tester, a Democrat from Montana. “It’s not our intended outcome, but it’s certainly a possibility.” Powell stressed that the Fed’s primary goal is to reduce inflation but said he still hopes to achieve a “soft landing” — a reduction in inflation and a slowdown in growth without triggering a recession and high unemployment. “We do think it’s absolutely essential that we restore price stability, really for the benefit of the labor market as much as anything else,” Powell said on the first of two days of testimony as part of the Fed’s semiannual report to Congress. He said the pace of future rate hikes will depend on whether — and how quickly — inflation starts to decline, something the Fed will assess on a “meeting by meeting” basis. The central bank’s accelerating rate increases — it started with a quarter-point hike in its key short-term rate in March, then a halfpoint increase in May, then three-quarters of a point last week — has alarmed investors and led to sharp declines in the financial markets.

FEDERAL Reserve Chairman Jerome Powell speaks to the Senate Banking, Housing and Urban Affairs Committee, as he presents the Monetary Policy Report to the committee on Capitol Hill, Wednesday, June 22, 2022, in Washington. Photo:Manuel Balce Ceneta/AP Powell’s testimony comes exactly a week after the Fed announced its three-quarters-of-a-point increase, its biggest hike in nearly three decades, to a range of 1.5% to 1.75%. With inflation at a 40-year high, the Fed’s policymakers also forecast a more accelerated pace of rate hikes this year and next than they had predicted three months ago, with its key rate reaching 3.8% by the end of 2023. That would be its highest level in 15 years.

Concerns are growing that the Fed will end up tightening credit so much as to cause a recession. This week, Goldman Sachs estimated the likelihood of a recession at 30% over the next year and at 48% over the next two years. A senior Republican on the Banking Committee, Sen. Thom Tillis of North Carolina, on Wednesday accused Powell of having taken too long to raise rates, saying the Fed’s hikes “are long overdue” and that

its benchmark short-term rate should go much higher. “The Fed has largely boxed itself into a menu of purely reactive policy measures,” Tillis said. Tillis, like many Republicans, also blamed President Joe Biden’s $1.9 trillion financial stimulus package, approved in March 2021, for being excessively large and exacerbating inflation. Many economists agree that the additional spending contributed to rising prices by magnifying demand even while supply chains were snarled by COVID-related shutdowns and labor shortages were driving up wages. Inflation pressures were further worsened by Russia’s invasion of Ukraine. Biden on Wednesday called on Congress to suspend U.S. gas and diesel taxes for three months to reduce the sting of high pump prices, which are averaging nearly $5 a gallon. Many economists are skeptical that consumers will see the full benefit of a tax holiday on the 18.4 cents-a-gallon gas tax. The public’s anxiety about inflation has weakened Biden’s approval ratings and raised the likelihood of Democratic losses in November. While taking

some steps to try to ease the burden of inflation, the president has stressed his belief that the ability to curb inflation rests mainly with the Fed. At Wednesday’s hearing, Sen. Elizabeth Warren, a Democrat from Massachusetts, challenged Powell’s rate hike plans and asked whether they would reduce gas or food prices, some of the highest-profile drivers of inflation. Powell acknowledged that they wouldn’t. Instead, Powell said that higher borrowing costs for things like mortgages, auto loans and credit cards, resulting directly from the Fed’s hikes, can help slow consumer demand and inflation pressures. Yet Warren and other Democrats argued that the Fed’s approach carries the risk of weakening the economy and heightening unemployment even as the war in Ukraine keeps gas and food prices high. Such a dynamic would resemble the dreaded “stagflation” of the 1970s. “You know what’s worse than high inflation with low unemployment?” she asked. “High inflation and a recession with millions of people out of work.”

PAGE 12, Thursday, June 23, 2022

THE TRIBUNE

PRESIDENT Joe Biden speaks about gas prices in the South Court Auditorium on the White House campus, Wednesday, June 22, 2022, in Washington. Photo:Evan Vucci/AP

Biden calls for 3-month suspension of gas and diesel taxes By JOSH BOAK Associated Press PRESIDENT Joe Biden on Wednesday called on Congress to suspend federal gasoline and diesel taxes for three months — an election-year move meant to ease financial pressures that was greeted with doubts by many lawmakers. The Democratic president also called on states to suspend their own gas taxes or provide similar relief, and he delivered a public critique of the energy industry for prioritizing profits over production. It would take action by lawmakers in Washington and in statehouses across the country to actually bring relief to consumers. “It doesn’t reduce all the pain but it will be a big help,” Biden said, using the bully pulpit when his administration believes it has run out of direct levers to address soaring gas prices. “I’m doing my part.

MARKET REPORT www.bisxbahamas.com

WEDNESDAY, 22 JUNE 2022

BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 53.00 2.30 2.61 2.60 6.10 10.05 3.89 9.02 3.10 8.00 16.60 2.65 10.75 11.25 10.85 15.80 4.00 11.00 16.50

52WK LOW 5.30 33.80 1.54 2.20 1.30 5.75 6.96 2.82 4.50 2.27 5.95 9.75 1.99 7.05 10.02 9.55 13.10 3.50 8.19 15.50

SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank (Bahamas) Limited Focol Finco J. S. Johnson

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00

1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 1.00

Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 9 Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited

CLOSE

CHANGE

%CHANGE

YTD

YTD%

2489.33

15.19

0.61

261.09

11.72

SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ BFHP CAB6 CAB9 CHLA FBBA FCLB SYMBOL FBB22 BFHB

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 102.68 100.47 100.67 100.43 100.34 100.23 100.00 100.00 100.98 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.97 99.96 100.67 100.43 100.04 100.00 89.62 89.00 90.24 90.73

MUTUAL FUNDS 52WK HI 2.52 4.69 2.22 207.86 212.41 1.73 1.83 1.82 1.05 9.37 11.83 7.54 16.64 12.84 10.77 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.68 1.73 1.75 0.99 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR141230 BGRS FL BGRS97033 BGRS FL BGRS71024 BGRS FL BGRS75022 BGRS FL BGRS81037 BGRS FL BGRS88028 BGRS FX BGR129249 BGRS FX BGR131249 BGRS FX BGR132249 BGRS FX BGR136150

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1412307 BSBGRS970336 BSBGRS710245 BSBGRS750225 BSBGRS810375 BSBGRS880287 BSBGR1292493 BSBGR1312499 BSBGR1322498 BSBGR1361504

LAST CLOSE 5.45 39.95 2.25 2.35 2.51 6.10 9.75 3.89 8.36 3.01 8.00 16.00 2.69 10.26 10.97 10.85 15.80 3.98 10.00 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 102.68 100.09 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00

CLOSE 5.50 39.95 2.25 2.35 2.51 6.10 9.75 3.89 8.59 3.10 8.00 16.00 2.69 10.26 11.06 10.85 15.80 3.98 10.00 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00

BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

VOLUME 1,250

2,150

3,000 25,000

0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 102.68 100.09 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

MARKET TERMS

CHANGE 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.23 0.09 0.00 0.00 0.00 0.00 0.09 0.00 0.00 0.00 0.00 0.00

(242) 323‐2330 (242) 323‐2320 EPS$ 0.239 0.932 0.000 0.140 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000

VOLUME

DIV$ 0.170 1.260 0.020 0.080 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000

INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 5.35% 4.31% 4.56% 4.43% 4.87% 4.33% 5.55% 5.60% 5.65% 5.69%

NAV 2.52 4.69 2.21 197.44 202.39 1.73 1.82 1.82 0.99 9.37 11.79 7.54 15.94 12.47 10.74 N/A 10.43 14.89

YTD% 12 MTH% 0.99% 4.22% 0.36% 5.78% 0.67% 2.74% -2.97% -2.35% -4.72% 6.04% 0.83% 2.82% -0.18% 3.72% 0.76% 3.55% -3.55% -3.85% -0.02% 10.36% -0.33% 18.23% 0.22% 3.05% -3.89% 14.76% -1.04% -2.57% 0.81% 4.20% N/A N/A 3.00% 25.60% 7.90% 48.70%

P/E 23.0 42.9 N/M 16.8 N/M N/M 26.4 -8.9 61.4 16.8 17.8 22.2 26.4 22.0 17.1 14.9 19.4 19.6 10.6 24.6 0.000 0.000 0.000 0.000 0.000 0.000

YIELD 3.09% 3.15% 0.89% 3.40% 0.00% 0.00% 2.67% 0.00% 0.00% 3.87% 2.75% 4.50% 16.13% 0.58% 2.97% 2.21% 3.42% 3.02% 2.00% 3.94% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 17-Nov-2030 17-Apr-2033 22-Oct-2024 7-Sep-2022 26-Jul-2037 26-Jul-2028 15-Apr-2049 15-Jul-2049 15-Oct-2049 21-Apr-2050

NAV Date 31-Mar-2022 31-Mar-2022 25-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Mar-2021 31-Mar-2021 31-Mar-2021

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

I want Congress, states and industry to do their part as well.” At issue is the 18.4 centsa-gallon federal tax on gas and the 24.4 cents-a-gallon federal tax on diesel fuel. If the gas savings were fully passed along to consumers, people would save roughly 3.6% at the pump when prices are averaging about $5 a gallon nationwide. Biden’s push faces uphill odds in Congress, which must act in order to suspend the tax, and where many lawmakers, including some in his own party, have expressed reservations. Even many economists view the idea of a gas tax holiday with skepticism. Democratic House Speaker Nancy Pelosi offered a noncommittal response to Biden’s proposal, saying she would look to see if there was support for it in Congress. “We will see where the consensus lies on a path forward for the president’s proposal in the House and the Senate,” Pelosi said. Unlikely to pass a gas tax holiday through the 50-50 Senate, Majority Leader Chuck Schumer of New York said Wednesday that Democrats will focus instead on their bill to crack down on oil companies “manipulating the market” for higher prices and profits. “We’re going to focus on that issue,” Schumer said. In his speech, Biden tied higher energy prices to Russia’s invasion of Ukraine and said, “defending freedom, defending democracy was not going to go without cost for the American people and the rest of the free world.” The president noted that lawmakers backed sanctions against Russia and aiding Ukraine despite the risks of inflation from resulting energy and food shortages. Democrats, Republicans and independents in Congress chose to support Ukraine, “knowing full well the cost,” he said. “So for all those Republicans in Congress criticizing me today for high gas prices

in America: Are you now saying you were wrong to support Ukraine?” Biden said. “Are you saying that we would rather have lower gas prices in America than (Russian President Vladimir) Putin’s iron fist in Europe? I don’t believe that. “ The president said “states are now in a strong position to be able to afford to take some of these actions,” thanks to federal support from the 2021 COVID19 relief bill. But there is no guarantee that states will tap into their budgets to suspend their taxes on gas or to deliver rebates to consumers, as Biden is requesting. Barack Obama, during the 2008 presidential campaign, called the idea of a gas tax holiday a “gimmick” that allowed politicians to “say that they did something.” He also warned that oil companies could offset the tax relief by increasing their prices. The administration is saying that gas tax suspensions at the federal and state levels as well as energy companies pouring their profits into production and refining capacity could cut gas prices by $1 a gallon. High gas prices pose a fundamental threat to Biden’s electoral and policy ambitions. They’ve caused confidence in the economy to slump to lows that bode poorly for defending Democratic control of the House and the Senate in November. Biden’s past efforts to cut gas prices — including the release of oil from the U.S. strategic reserve and greater ethanol blending this summer — have not delivered savings at the pump, a risk that carries over to the idea of a gas tax holiday. The president can do remarkably little to fix prices that are set by global markets, profit-driven companies, consumer demand and aftershocks from Russia’s invasion of Ukraine and the embargoes that followed.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that we, Antonio P. Jean of Marsh Harbour, Abaco, Bahamas and Guyveline Saint-Victor of #15, Palm Tree Avenue, New Providence, intend to change our child’s name from NEETCHY MAGG VASTHY SAINT-VICTOR and NEETCHY MAGG VASHTY SAINT VICTOR to NEETCHY ANTONIA P JEAN. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O. Box N-742, Nassau, New Providence, Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that PEDRO JOSE MARTINEZ VASQUEZ of P. O. Box SS-5612, Nassau Village, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of June, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Thursday, June 23, 2022, PAGE 13

FILLETS of Chilean sea bass caught near the U.K.-controlled South Georgia island are displayed for sale at a Whole Foods Market in Cleveland, Ohio on June 17, 2022. A diplomatic row is taking place near the South Pole dividing the normally allied U.S. and U.K. governments in response to provocations from Russia over catch limits of the meaty toothfish. The feud could lead to an import ban on the fish, which U.S. officials insist is being caught unlawfully in violation of rules governed by the Antarctic Treaty. Photo:Joshua Goodman/AP

FISHING FEUD AT END OF THE WORLD SPLIT US AND UK OVER RUSSIA By JOSHUA GOODMAN Associated Press

IT’S one of the world’s highest-fetching wild-caught fish, sold for $32 a pound at Whole Foods and served up as meaty fillets on the menus of upscale eateries across the U.S. But Russia’s obstruction of longstanding conservation efforts, resulting in a unilateral rejection of catch limits for the Chilean sea bass in a protected region near Antarctica, has triggered a fish fight at the bottom of the world, one dividing longtime allies, the U.S. and U.K. governments. The diplomatic feud, which has not been previously reported, intensified after the U.K. quietly issued licenses this spring to fish for the sea bass off the coast of South Georgia, a remote, uninhabited U.K.controlled island some 1,400 kilometers east of the Falkland Islands. As a result, for the first time since governments banded together 40 years ago to protect marine life near the South Pole, deep-sea fishing for the pointy-toothed fish is proceeding this season without any catch limit from the 26-member Commission on the Conservation of Antarctic Marine Living Resources or CCAMLR. The move essentially transformed overnight one of the world’s best-managed fisheries into a France-sized stretch of outlaw ocean — at least in the eyes of U.S. officials threatening to bar U.K. imports from the area. “In a world beset by conflict, the U.K. is playing a risky game,” said Will McCallum, head of oceans at Greenpeace U.K. “The history of Antarctic protection is one of peaceful cooperation for the common good of humanity. Russia’s consistent willingness to abuse the process cannot excuse unilateral action by other Members. We trust that countries who have previously imported South Georgia toothfish will not accept the catch of what is now an unregulated fishery.” For decades, the fishery near South Georgia was a poster child for international fisheries cooperation, one that brought together sometimes adversarial powers like Russia, China and the U.S. to protect the chilly, crystal blue southern ocean from the sort of fishing free-for-all seen on the high seas. Last year, as tensions with the West were rising over Ukraine, Russia took the unprecedented step of rejecting the toothfish catch limits proposed by the Antarctic commission’s scientists. The move was tantamount to a unilateral veto because of rules, common to many international fisheries pacts, that require all decisions to be made by unanimous agreement. But critics say the U.K.’s response — issuing licenses without a CCAMLRapproved catch limit — is unlawful under the commission’s rules and weakens the Antarctica Treaty established during the Cold War

that set aside the continent as a scientific preserve. U.S. officials have also privately told their U.K. counterparts that they would likely bar imports of any toothfish caught near South Georgia, according to correspondence between U.S. fisheries managers and members of Congress seen by The Associated Press. The fight underscores how Russia’s attempts to undermine the West have extended to even obscure forums normally removed from geopolitical tussles. It also risks reviving Britain’s tensions with Argentina, which invaded South Georgia in 1982 as part of its war with the U.K. over the Falkland Islands. But the outcome couldn’t be more consequential: With fish stocks across the globe declining due to overfishing, consumers are demanding greater transparency about where the filets on their plates are sourced. Central to that effort is rules-based international fisheries management on the open ocean and environmentally sensitive areas like the polar regions. “It sets a dangerous precedent,” said Evan Bloom, who for 15 years, until his retirement from the State Department in 2020, led the U.S. delegation to the CCAMLR. “What the Russians did clearly violates the spirit of science-based fisheries management,” added Bloom, who is now an expert on polar issues at the Wilson Center in Washington. “But that doesn’t necessarily mean that the U.K. can act unilaterally.” Three of the four vessels authorized by the U.K. to fish near South Georgia starting May 1 belong to Argos Froyanes, a British-Norwegian company that pioneered techniques credited with dramatically reducing seabird mortality in the south Atlantic. One of its customers is New York-based Mark Foods, the largest U.S. supplier of sea bass certified by the Marine Stewardship Council, the industry’s gold standard for sustainability. CEO Barry Markman declined an interview request but said his company would not import any product deemed illegal by U.S. authorities. “We have been working collaboratively with U.S. officials to resolve this situation in a favorable manner,” he wrote in an e-mail. Chilean seabass — the commercial name of Patagonia toothfish — from South Georgia is sold at both Whole Foods and Orlando-based Darden Restaurants, which operates the fine-dining chains Eddie V’s and The Capital Grille. Neither company responded to a request for comment. An official from the government of South Georgia and the South Sandwich Islands, which issued the licenses in coordination with the U.K. foreign office, said it took action so as not to give in to obstructionist tactics by Russia that it doesn’t expect will end anytime soon.

PAGE 22, Thursday, June 23, 2022

THE TRIBUNE

US stocks give up afternoon gains and end slightly lower By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers A CHOPPY day of trading on Wall Street ended with a modest pullback for stocks Wednesday, the latest bout of volatility for the market amid concerns about inflation and uncertainty over whether rising interest rates will help or hinder the economy. The indexes were on pace for a modest gain before slipping into the red in the final minutes of trading. The S&P 500 dropped 0.1%, with the stocks in the benchmark index about evenly split between gainers and decliners. The Dow Jones Industrial Average gave up 0.2% and the Nasdaq fell 0.1%. Energy companies helped pull the market lower after the price of U.S. crude oil fell 4%. Technology companies also lost ground, which helped keep gains in health care, real estate and other sectors in check. Investors closely watched testimony to Congress from Federal Reserve Chair Jerome Powell. He reaffirmed the central bank’s determination to raise interest rates and slow inflation. The choppy trading followed a solid rally on Tuesday in what has been a turbulent period for the broader market, with daily and sometimes hourly swings from sharp gains to losses. The benchmark S&P 500 is currently in a bear market, which means it has dropped more than 20% from its most recent high, which was in January. It has also fallen in 10 of the last 11 weeks, but is holding on to gains so far for this week. Much of the market’s decline has been tied to

AN NYSE sign is seen on the floor at the New York Stock Exchange in New York, Wednesday, June 15, 2022. Stocks are opening lower on Wall Street, Wednesday, June 22, as sharp drops in crude oil prices pull energy companies lower. Big technology stocks were also lower, but major indexes were still holding on to gains for the week. Photo:Seth Wenig/AP concerns about rising inflation and the Federal Reserve’s plan to aggressively raise interest rates in order to temper inflation’s impact on consumers and businesses. “There have been some new hurdles put in front of us,” said Sylvia Jablonski, chief investment officer at Defiance ETFs. As a result, she said, many investors are “sitting on the sidelines.” The S&P 500 fell 4.90 points to 3,759.89. The index bounced between a gain of 1% and a loss of 1.3% throughout the day. The Dow dropped 47.12 points to 30,483.13, while the tech-heavy Nasdaq slipped 16.22 points to 11,053.08. Smaller company stocks also fell moderately. The Russell 2000 index slid 3.75 points, or 0.2%, to 1,690.28. Bond yields mostly fell. The yield on the 10-year Treasury note, which helps set mortgage rates, fell to 3.16% from 3.30%

late Tuesday. Markets in Europe and Asia also fell. On Wednesday, Powell underscored the Fed’s determination to raise interest rates high enough to slow inflation, a commitment that has fanned concerns that the central bank’s fight against surging prices could tip the economy into recession. Powell is addressing Congress this week, starting with the Senate Banking Committee on Wednesday. “We’re not trying to provoke and don’t think that we will need to provoke a recession,” Powell said. “But we do think it’s absolutely essential that we restore price stability, really for the benefit of the labor market as much as anything else.” Powell’s testimony came a week after the Fed raised its benchmark interest rate by three quarters of a percentage point, its biggest hike in nearly three decades.