business@tribunemedia.net
FRIDAY, JULY 16, 2021
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Developer’s fears on home construction ‘horror stories’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
CONSTRUCTION materials shortages and COVID-19 will combine to create “horror stories” for Bahamians in the process of building their own homes, a prominent developer predicted yesterday. Franon Wilson, Arawak Homes president, told Tribune Business that some homeowners could be left with incomplete homes and significant cost overruns as a result of supply chain bottlenecks and pentup construction demand stemming from COVID-19 lockdowns and restrictions imposed locally and abroad over the past 16 months. While reassuring that the fixed-price nature of Arawak Homes’ contracts would protect its clients
* Supply shortages may leave projects ‘incomplete’ * Arawak Homes chief brands woe ‘unprecedented’ * Says many homes delayed on material availability from these challenges, Mr Wilson described the postlockdown challenges faced by his company and other developers as “unprecedented” during his 20-plus years with the firm. He disclosed that shortages of critical materials - chiefly cement, concrete blocks and plywood - had been a consistent problem since The Bahamas emerged from last year’s COVID-19 lockdown, and were forcing Arawak Homes to constantly shift supplies around between homes it is building so that construction work can continue and delays are minimised.
Branding the impact as “huge”, Mr Wilson said that despite these efforts “a lot of home would be further along than they are if not for these issues”, and reiterated that - especially for construction and real estate development - time equals extra money and cost. Disclosing that there has been “no cement on island for a couple of weeks”, the Arawak Homes president said he was “hopeful that issue corrects itself this week” but remained unsure if there would be sufficient supply for all who need this construction staple or if everyone would be rationed to just a portion of what
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
with less space as it unveiled the latest phase in a neighbourhood food store roll-out that aims to AML Foods is targetdrive total annual sales to ing $12m in annual sales $250m by 2030. from its new Solomon’s He voiced optimism Freeport location, its top that Solomon’s Freeexecutive revealed yesport, which will re-open terday, despite it being GAVIN Watchorn in March 2022 at the two-thirds the size of its former Winn-Dixie (City former Queen’s Highway site. Markets) site following a $3.5m Gavin Watchorn, the BISX- investment, will “do all if not more listed food retail and franchise of the sales” generated previously group’s president, told Tribune at Queen’s Highway despite being Business that it aims to do more SEE PAGE B4
‘Shell billions show corporate tax need’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
on Shell’s tax filings revealed that more than $1.8bn of its offshore profits in 2018 and 2019 were A BAHAMIAN financial booked by Bahamas-based services provider yesterday Shell Western Supply and argued this nation should Trading. The oil trading not use global demands outfit was said to buy oil for a 15 percent minimum from Shell fields and other corporate tax rate “as producers in West Africa, a marker” after Ireland Brazil and Guyana, and refused to budge from its sells two-thirds lower regime. of the crude it Paul Moss, presiacquires to other dent of Dominion Shell affiliates. Management SerShell Westvices, told Tribune ern was reported Business that The to enjoy a profit Bahamas should margin of 4.1 perboth seek to form cent across 2018 alliances with the and 2019, more likes of Ireland and than four times’ implement a corpothe level of inderate income tax at a pendent oil much lower 5 pertrading firms, with cent level “for its its profits also outown needs” rather PAUL MOSS, performing rivals. president of than wait to be Yet The Bahamas dictated to by the Dominion Manseemingly earns agement Services. G-7 and Organisanothing in taxes or tion for Economic anything else from Co-Operation and Devel- the profits being booked in opment (OECD). this nation. While The Bahamas is This would potentially among the 130 nations who be caught by a corporate have already committed income tax, and Mr Moss to the G-7/OECD Inclu- said: “We ought to be able sive Framework, Mr Moss to catch these guys, but said his long-standing call catch it for ourselves and for this nation to imple- not be dictated to by the ment a low-rate corporate G-7 or anybody else. We income tax had been fur- got nothing from it. Imagther justified following ine getting 5 percent of that recent revelations about and what that would do for how much profit Shell, the the country. We have to go multinational energy giant, after it and get it on out is booking through this terms, not those who want nation. to put us out of competition A recent Reuters report SEE PAGE B5
A TOP regulator yesterday said concerns about the Bahamian radio broadcasting market being over-saturated “will always be around even if we had 50 percent of the stations we have now”. Carlton Smith, the Utilities Regulation and Competition Authority’s (URCA) chief executive, told Tribune Business that it was seeking to balance “competitive pressures” with facilitating new entrants in a “free market enterprise system” despite previous research having shown The Bahamas has more FM radio stations than New York city. He was responding to questions
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
from this newspaper on what had convinced URCA to remove the previous moratorium on new FM radio licences in New Providence, and seek bids for new broadcasters to use the 90.7 MHz or 105.7 MHz spectrum frequencies, especially given previous concerns that existing stations’ signals were causing “harmful interference” for each other’s transmissions. Acknowledging that it was “a legitimate question”, Mr Smith said the March 2019 implementation of Technical standards for FM Radio Broadcasting in The Bahamas appeared to have cleared up, and addressed, the interference issues based on feedback from industry players themselves. SEE PAGE B6
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they need. “A lot of construction goes in order,” he told this newspaper. “If at any time you do not have materials for a particular step, while there are some steps you can move around and continue to work, there are some times when you need a specific material to get to the next stage and, if you cannot get that material everything comes to a grinding halt. “That has a lot of serious implications. It’s unprecedented, and can truly lead to a lot of issues we do not need right now. This has never happened before. If you wanted it, you could
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
CUSTOMS SYSTEM IN GB ‘BEYOND REPAIR’ BAHAMAS Customs yesterday said its electronic system for clearing goods on Grand Bahama is “beyond repair”, warning that the island’s cross-border commerce will return to manual process until September. The agency, in response to a series of Tribune Business articles, confirmed in a statement that its legacy Electronic Customs Automated System (eCAS) is now “inoperable” which has made the switch to its Electronic Single Window (ESW) or Click2Clear system with effect from September 1 “even more critical”. “The Customs Department wishes to offer sincerest apologies to all stakeholders that have been significantly inconvenienced by the recent failure of eCAS. The system began experiencing intermittent issues in February 2021, but a critical failure in June rendered the system inoperable,” Customs said. “Recent assessments determined that the legacy system is beyond repair and will therefore be phased out and replaced by the electronic single window, Click2Clear platform. Currently, the entry checking and releasing unit systems are being handled manually, and the department has officers working around the clock to ensure accurate inputs are maintained and processed.” This effectively means that Grand Bahama and
FRANON WILSON, Arawak Homes president. get it, and we took it for granted. We work with local construction companies, and when they do not have certain things, whether it be cement or concrete blocks, the implications flow throughout. SEE PAGE B4
AML Foods targets $12m Radio over-saturation sales at new Freeport site ‘will always be concern’ * Shifting Solomon’s outlet to ex-Winn Dixie store * Plans $3.5m investment with 40 jobs by March * Latest step in ‘neighbourhood stores’ roll-out
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