business@tribunemedia.net
WEDNESDAY, JULY 25, 2018
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Chamber chief: ‘Too early’ for blame game over VAT By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
B
LAMING the VAT hike for business declines is “the easy answer”, Exuma’s Chamber of Commerce chief said yesterday, as the 12 percent rate is felt far more keenly in the Family Islands. Pedro Rolle warned against rushing to judgment over recent “noticeable” sales declines at Exuma’s restaurants and food stores, suggesting it was “too early” to blame the VAT rate increase when various factors may be involved. A realtor by profession, the Chamber president said he will also be watching the
PM TO UNVEIL $2BN GB DEAL By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE prime minister will today announce the heads of agreement signing for the $2bn revival of the former Ginn project in Grand Bahama’s West End, sources said last night. Well-placed Tribune Business contacts suggested Dr Hubert Minnis plans to make a big impact before Parliament breaks for the summer recess, with the deal with Toronto-based developer, Skyline Investments, said to have been signed quietly last week. The prime minister will
SEE PAGE 6
* ‘Noticeable’ restaurant fall-off on Exuma * High season to decide real estate ‘scare off’ * Rate hike felt more keenly on Out Islands island’s peak SeptemberNovember season closely to see whether buyers particularly in the foreign second home sector - have been “scared away” by the tax increases and change to the definition of owneroccupied property. “There seems to have been a noticeable decline in the restaurants but they don’t have numbers,” Mr Rolle told Tribune Business of the weeks immediately following the VAT rate increase. “They’re not saying ten percent less, 20 percent less, but they have
GOVERNANCE reformers last night urged the government to make the Fiscal Responsibility Bill “the first thing they work on” when Parliament returns, expressing disquiet over its delay until fall. Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, expressed “disappointment” on the civil society group’s behalf that the legislation will now only be brought to Parliament after the summer recess.
By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net WESTERN Air is eyeing route expansion both domestically and internationally, having made a “multi-million” investment to upgrade its fleet through the addition of three new jets. Sherrexcia “Rexy” Rolle, the Bahamian airline’s vicepresident of operations and general counsel, told Tribune Business yesterday that it was upgrading its fleet with the addition of three 50-seat Embraer 145 jets. The company has already taken possession of one, and expects to receive the rest in the coming months. “Currently we are in the process of upgrading our
He told Tribune Business that the Fiscal Responsibility Bill was “critically important” to placing The Bahamas “on a more fiscally buoyant position”, boosting transparency and accountability over the government’s finances while also imposing greater spending discipline. Mr Aubry urged the Minnis administration that the bill’s passage to Parliament “not be delayed any further” than Autumn 2018, given that it represents the government fulfilling its side of the fiscal consolidation bargain following
SEE PAGE 5
Contractors differ over VAT waiver By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net TOP Bahamian Contractors Association (BCA) executives yesterday took opposing stances on the industry’s ability to access the “waiver” from 12 pecent VAT on pre-existing contracts. Leonard Sands, pictured, the BCA’s president, told Tribune Business that contractors were still incurring 12 percent VAT payments “out of pocket” on materials purchased locally or imported for projects “in progress” that were supposed to be honoured at the pre-existing 7.5 percent rate.
in summer. “All he’s saying to me is it reduced,” the Exuma Chamber president added, suggesting the poor quality of business record-keeping on the island made it hard to determine the cause of such trends. “The easier answer is to blame it on VAT, but that’s the easier answer and it might not be the correct answer,” Mr Rolle told Tribune Business. “I’m a little bit hesitant to talk about that in terms of the reasons for the decline. I think it’s a little
SEE PAGE 4
Bahamian airline in ‘multi-million’ growth
Make Fiscal Bill ‘first thing worked on’ after summer By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
noticed a decline in the numbers coming in. “I’d hate to put that all on VAT. One of the reasons could be it’s summer. So many people travel, and we have less visitors in summer, so it could be a combination of factors. We’ll be better able to assess the issue in September, as it’s really difficult to know in summer.” Mr Rolle said one of Exuma’s major food stores had informed him it had seen a decline in business as well, but this was difficult to assess as well given that sales typically dropped off
too early to tell.” In his industry, real estate, he suggested it might take three months before the impact from 12 percent VAT and other budgetrelated tax changes is truly felt. “Our expectation is this year will be a better year for real estate than last year,” Mr Rolle said. “Between September to November is the high season, and if that doesn’t happen we’ll be able to tell definitely if people have been scared away by the VAT. We don’t want to be quick, but equally we don’t want to be lazy in coming to these conclusions. Let’s give it a while and see how it works out.” Roderick Simms, head
He blamed the absence of “concrete documents” from the Department of Inland Revenue (DIR) showing that contractors engaged on projects underway, or signed, before July 1 were entitled to pay the lower rate. But Tameka Hanna, the
SEE PAGE 6
* Western Air adding three jets to fleet * Will open up bigger passenger market * Looking at local, international expansion
REXY ROLLE fleet. We made an investment in Embraer 145 jets, which are 50 seaters that are operated right now by American Eagle and a
few other regional carriers,” she said. “Essentially the goal is to improve upon what we already have going,
especially between Freeport and Nassau, but also to expand our routes nationally and, hopefully, internationally as well. I think the Embraer 145s are a great solution for that.” Ms Rolle added: “I’d like to believe we are getting close to completing the certification process. We have been working with the Bahamas Civil Aviation Authority to get that done because it will be the first of its kind registered in The Bahamas. We have taken
SEE PAGE 4
$4.94 Tourism’s counterattack against exbeauty queen
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Ministry of Tourism is claiming it could not have breached a former Bahamian beauty queen’s copyright because of her deal with the Junkanoo Carnival organisers. The government agency, in a furious counter-attack against Khiara Sherman, pictured, the former Miss Bahamas Universe, knits together the various rules governing the 2015 Bahamas Song Competition to allege that she released it from any copyright infringement liability over the use of her Fly Away With Me track. The Ministry, in its July 17, 2018, counter-claim, said it was one of the Bahamas National Festival Commission’s (BNFC) sponsors that Mrs Sherman agreed to “indemnify, release and hold harmless” for any damages relating to her participation in promotional activity involving her song. As a result, it is claiming her copyright infringement lawsuit over the Ministry of Tourism’s use of Fly Away With Me without her purported permission violates The Bahamas song competition’s rules. Calling on the south
SEE PAGE 4
PAGE 2, Wednesday, July 25, 2018
GOVT TARGETING JOBS TIE-UP WITH CARNIVAL
THE TRIBUNE
THE government is hoping Bahamians will soon find work aboard luxury cruise ships through its partnership with Carnival Cruise Lines. Senator Dion A Foulkes, the minister of labour, and Ministry officials sought to move the initiative forward in recent meetings with Carnival officials.
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PICTURED from left: Ricardo Deveaux, first assistant secretary, Ministry of Labour; Gadville McDonald, executive director, the National Training Agency; Cecilia Strachan, permanent secretary (acting), Ministry of Labour; Dion A Foulkes, minister of labour; Marie McKenzie, vice-president, global ports and Caribbean government relations for Carnival Corporation; Domenico Rognoni, deputy chairman, the Bahamas Shipowners Association and vice-president and chief compliance officer for Carnival; and Richard Pruitt, vice-president, environmental operations at Carnival.
VAT EXEMPTIONS ‘NO SMALL ORDER’ By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net THE DEPUTY prime minister yesterday conceded it was “no small order” for foods stores and pharmacies to reclassify products ahead of their value-added tax (VAT) “zero rating” on August 1. KP Turnquest acknowledged that the Minnis administration’s policy of VAT-free “breadbasket” food items and medication represents a “major change” for both consumers and retailers. In a statement released yesterday afternoon, he said: “Once the changes take effect, Bahamian consumers will receive the benefits of the government’s policy of VAT-free breadbasket items and medication. This is a major change as it involves thousands of items that will now be VAT-free.” Mr Turnquest said the Ministry of Finance had been consulting with the private sector and mobilising its officials to effect a smooth transition.
K PETER TURNQUEST “I feel very confident about the readiness of the Ministry of Finance, and its ability to provide the business community with the information they need. We appreciate their continued input as we organise our internal teams, and we commend the business community for its commitment to compliance, particularly with the new VAT Amendment Act 2018,” said Mr Turnquest. “We know implementing the new VAT rate required businesses to update their entire inventories in a short period of time for
the July 1 change over. This was done with great success. Now, they have it do again to reclassify and re-price the VAT-free items for the August 1 change. “Again, this is no small order, but businesses and consumers should know that these efforts are in the interest of delivering tangible savings to the Bahamian people on one of their most important reoccurring expenses, groceries and medication.” The “breadbasket” list contains 23 categories of goods: Formula, bread, butter, cheese, condensed milk, cooking oil, corned beef, evaporated milk, flour, fresh milk, grits, canned fish, margarine, mayonnaise, mustard, powdered detergent, rice, bathing soap, soups and broth and tomato paste. Mr Turnquest previously told Tribune Business that the zero-rating of “breadbasket” items, and removal of VAT from medicine, was designed to relieve the burden of a 12 percent rate on “those most vulnerable families”.
THE TRIBUNE
Wednesday, July 25, 2018, PAGE 3
US FIRM TOUTS ‘IDEAL SOLUTION’ FOR BAHAMAS By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net A US-based company believes it has developed an “ideal and cost effective” solution that could create “thousands” of solarpowered Bahamian homes. Malcolm Wright, chief executive of Cat5 Building Systems & Materials, told Tribune Business the company was getting set to roll-out its solutions in Puerto Rico, which was ravaged by Category 4 Hurricane Maria last September. The initial products being launched by are its wall blocks system, mooring and roof systems.
“We formed Cat5 back in January of this year. The block system goes back 11 years, and the solar panels go back to 2012. The panels are manufactured as part of a joint venture with a Canadian company,” said Mr Wright. He added that unlike the average solar panel, his company’s product is virtually “unbreakable” as it is not made of glass and can withstand winds of up to 200 miles per hour. According to Cat5, its solar panels are “embedded in a proprietary fire proof skin resulting in cost savings by eliminating the heavy glass panels and aluminum takings required for
traditional solar panels”. “Basically every other solar panel is made of glass, and the problem with glass is it breaks and the panels lift off the racking. I think what we offer is ideal for The Bahamas. In Puerto Rico, loads of solar panels were blown off roofs. Our panels can be bolted on to the roof or concrete and don’t require any racking as wind can’t get underneath it,” said Mr Wright. He added that the panels can fit various roof styles, and said the company’s block solution - which is 33 percent denser than the typical block used in construction - can lead to the cost effective development
of thousands of homes as it allows for easy assembly and little need for skilled labour. “If you use our solar panels as well as block system you have have a zero building. What that means is you do not draw any electricity off the grid, and it has zero carbon footprint. Those we build
combine solar panel with our back system. That is the ideal low income housing solution. The house can pay for itself. There’s no need for skilled labour as the block system allows for easy assembly. This solution could build thousands of self-powered homes in The Bahamas,” said Mr Wright. He explained
that Cat5 would approach local block manufacturers and supply them with mould for their block machines, as well as demonstrate how to mix the concrete. Mr Wright said his company would be open to bringing the solution to The Bahamas if there is “significant interest”.
ACCOUNTANT A boutique Offshore Bank is seeking a candidate for the position of Accountant RESPONSIBILITIES: • Direct responsibility for bank and investment reconciliations • Data preparation, input maintenance and upkeep of the general ledgers of client companies, trusts and other structures, including preparation of related yearly financial statements and periodic cash flow analyses • Assist the Manager, as required with the preparation of monthly and quarterly financial statements of the Bank KNOWLEDGE REQUIRED SKILLS: • Professional Certification i.e. CPA, ACCA or CA • 3-5 years’ experience with in related field • Strong oral and written communication skills • Knowledge of banking and investment products and their application in overall management and administration of wealth • Working knowledge of accounting concepts and their applications • Ability to identify potential risk issues and solutions and to communicate these effectively to senior management • Excellent time management, organization and administrative skills • Strong analytical and problem-solving skills • The drive and motivation to meet targets • Strong PC skills • Strong interpersonal skills and excellent team player
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Salary and benefits will commensurate with qualifications and experience. Suitable candidates should submit resumes to: Human Resources - Accountant DA 110605 c/o The Tribune P O Box N-3207 Nassau, Bahamas
www.ub.edu.bs
CAREER OPPORTUNITY Suitably qualified candidates are invited to submit applications for the following position available at University of The Bahamas:Recruitment Officer I will assist and provide general support to the Recruitment & Admissions Office related to local and international recruitment for prospective students at University of The Bahamas (UB). Among the duties and responsibilities are: • Assist with attending and/or presenting at educational fairs, exhibitions, on and off-site recruitment events and activities. This may include visitation to junior high schools, secondary high schools, businesses and civic groups locally and internationally; • Create a pleasant relationship with all New Providence, as well as, Family Island schools’ guidance counselors and principals; • Assist with generating and maintaining a database for each high school that should be updated annually and, in some cases, at the beginning of each new school term; • Contribute innovative ideas and strategies as it relates to the recruitment of new applicants; • Assist with budget analysis and the development of recruitment strategies; • Submit required weekly, annual or other reports in a timely manner; • Create reports or database on actual student programme interest and enrollment of all new students; • Assist with follow-up analysis of students’ enrollment and college experience; • Assist with reporting of all new programmes that are not currently offered at UB for the overall curriculum programme planning process; • Must uphold UB policies and procedures with regard to student privacy and confidentiality regulations. Qualifications Bachelor’s Degree in Business Administration (BBA), Marketing or Media Journalism, with at least 2-3 years of work experience in the work related environment. A detailed position announcement is available online at: http://www.ub.edu.bs/about-us/career-opportunities/ Applicants should electronically submit via hrapply@ub.edu.bs, to the attention of the Vice President, Human Resources the following documents: • A cover letter of interest highlighting work experience and accomplishments relevant to the position; • A completed UB Employment Application Form http://www.ub.edu.bs/wp-content/uploads/2017/01/Application-for-Employment-Staff.pdf;
• Current Curriculum Vitae or Resume; • Copy of the relevant pages of a valid passport showing passport number, photo identification and expiration date; • The names and contact information of three professional references. E-mail: hrapply@ub.edu.bs Attention: Vice President, Human Resources - University of The Bahamas DEADLINE TO APPLY: 25TH JULY 2018
PAGE 4, Wednesday, July 25, 2018
THE TRIBUNE
Chamber chief: ‘Too early’ for blame game over VAT FROM PAGE ONE of the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) Family Island division, told Tribune Business that the impact from the 60 percent VAT rate hike was being felt more heavily in these locations because the cost of living is higher than in New Providence. “The challenge is the
cost of living has always been a lot higher in the Family Islands than Nassau because most goods first come into Nassau,” he said. “They then have to be shipped to the Family Islands. “That incurs an extra cost that has VAT attached to it. Costs are already more expensive in the Family Islands than Nassau. The Family Islands are complying but it’s burdensome
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on an already-high cost of living.” Mr Simms expressed concern about the impact the VAT rate increase, and associated Real Property Tax Act reforms, may have on the foreign second home market that is a key driver of many Family Island economies. “If second home owners decide to put a pause on the funds invested or the amount of funds they’re
pumping in, it has a ripple effect on second home employees,” he added. Mr Simms said The Bahamas had “to wait for the true effect of 12 percent” VAT to fully materialise, given the waivers and transition periods provided to sectors such as construction and the hotels. “It’s a wait and see approach because 12 percent has not had its full effect,” he told Tribune
Business. “There are still some large components that have not caught up with 12 percent, and the construction sector is one of them. “We’re in the infancy stages, although information is coming back to give us a glimpse of 12 percent’s effects. It’s when these components take root that we’ll see the real repercussions of 12 percent on our economy.”
Tourism’s counterattack against exbeauty queen
use the song in any manner whatsoever”. “Mrs Sherman further agreed in the competition agreement to ‘release, indemnify, and hold the BNFC, its sponsors, and judges harmless for liability, damages, or claims for injury or loss to any person or property, relating to, in whole or in part, directly or indirectly, participation in promotional activity’.” The Ministry of Tourism is thus arguing that its status as a commission sponsor, combined with the agreement signed by Mrs Sherman, prevent her from suing for copyright infringement relating to Fly Away With Me. “The Ministry of Tourism was a sponsor of the competition. Therefore, Mrs Sherman agreed in the competition agreement to release, indemnify and hold the ministry harmless for any claims that at least in part indirectly related to participation in promotional activity,” the Ministry of Tourism’s legal filings allege. “Mrs Sherman also agreed in the competition agreement that ‘[a]ll submissions automatically become the property of the BNFC and may be reproduced, in whole or in part, at the discretion of the BNFC without any compensation or reimbursement to [the entrant] of any kind under any circumstances’.” The Ministry of Tourism’s counter-claim is the latest legal hurdle facing Mrs Sherman in the ongoing battle over her song, for the ministry is now arguing that her copyright infringement lawsuit breaches the agreement signed with the
Bahamas National Festival Commission. “Any alleged use of Mrs Sherman’s song was within the scope of authority Mrs Sherman directly granted to the ministry as a sponsor, or was within the scope of the BNFC’s authority under which the Ministry was acting,” Tourism alleged. “The BNFC performed its obligations under the competition agreement by entering Mrs Sherman’s song in the competition. Mrs Sherman’s filing of this lawsuit breaches multiple provisions of the competition agreement, including at least those provisions quoted above. The ministry has been damaged by Mrs Sherman’s breaches.” The Ministry of Tourism argued that the competition agreement was a “valid contract” that is “binding” on Mrs Sherman, and that it has the right to enforce it. Seeking to turn the tables, it is urging the south Texas court to find that it was the ex-beauty queen - not the Ministry of Tourism - that committed the breach, and demands damages including costs. The latest legal manoevere comes after Mrs Sherman won a victory that saw the south Texas federal court reinstate her “breach of contract” claim over the employment deal, leaving the Ministry of Tourism in a worse place than when it first attempted to dismiss her lawsuit. Previous legal filings, though, gave an indication of the Ministry of Tourism’s revised strategy. It claimed that “a valid license” allowed it to use the Fly Away With Me song in “two intro bumpers” to promote a Bahamian music festival, namely Bahamas Junkanoo Carnival. “Defendant states that the creation of two intro bumpers to promote a Bahamas music festival was authorised by a valid license,” the Ministry of Tourism alleged.
FROM PAGE ONE Texas court to award damages against the ex-Miss Bahamas Universe, the Ministry also accused Mrs Sherman of “falsely” claiming that she had an employment contract with it. It alleged that she was “unable to accept” its rejection of her employment application, once the ministry discovered her singing and other “outside commitments” might interfere with her work. Unveiling its legal counter-attack to claims it used Mrs Sherman’s song without permission in TV promotions of The Bahamas, the Ministry of Tourism alleged: “Mrs Sherman had previously submitted the song in question, Fly Away With Me, to the 2015 Bahamas Song Competition. “By submitting her song, Fly Away with Me, to the competition, Mrs Sherman agreed to the terms set forth in the competition’s Rules and Regulations. Among other terms, Mrs Sherman granted the Bahamas National Festival Commission (BNFC) the “unconditional right to
NOTICE
NOTICE
KINGPIN LIMITED
INTERNATIONAL BUSINESS COMPANIES ACT
LEGAL NOTICE
N O T I C E IS HEREBY GIVEN as follows:(a) KINGPIN LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 23rd July, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 25th day of July, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator
No. 45 of 2000
JOMANDE CO. LTD. IBC No. 163758B (the ”Company”)
Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No. 45 of 2000, the Dissolution of JOMANDE CO. LTD. has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 3rd day of July, 2018.
Bahamian airline in ‘multi-million’ growth FROM PAGE ONE delivery of one and we’re working on the second delivery, and the third is expected a few months down the line. There’s a possible fourth after that.” She said the new aircraft will offer quicker travel times and comfort, while opening up the company to a wider passenger market. “I think it fits into a nice niche. It’s faster, more convenient and offers more comfort than what we are operating right now. It allows us to open up our market to persons used to travelling a certain way, and who would be interested in travelling with us but would like an upgraded experience,” said Ms Rolle. Western Air currently operates with a fleet of five Saabs, and she added: “Based on where we plan on going we might have more use of the jets than the Saabs. We might see a transition in the next year or two. “Since the public has been made aware about the delivery of the jets we have been contacted by various communities in the Bahamas who would like us to consider coming to their islands. That is something we are certainly looking at, even places we have gone before. We now have the ability to be a bit more flexible, and we may consider going back to those national destinations. “We wanted to take a bet on Bahamians. For us it wasn’t that we wanted to upgrade our fleet, but our passengers were 100 percent on our mind. They have been loyal to us for a long time and it is important for them to grow with us and feel as though they are getting an upgrade themselves. That’s really the goal at the end of the day; how we can improve on their experience.” Ms Rolle said the domestic travel market appears to be “holding strong”, adding: “I think Bahamians are certainly travelling back to the islands more, which is great to see. We’re in the summer peak right now, and so we see a lot of people travelling back and forth with kids.”
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, CASSIUS ANTWJUAN SHEFFIELD of Coral Harbour (Bailey Drvie), Nassau, N.P., The Bahamas, intend to change my name to CASSIUS SHANE POWELL. 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, N.P., Bahamas no later than thirty (30) days after the date of publication of this notice.
THE TRIBUNE
Wednesday, July 25, 2018, PAGE 5
House GOP launches push for permanent individual tax cuts WASHINGTON Associated Press HOUSE Republicans have launched an effort to expand the massive tax law they muscled through Congress last year, aiming to make permanent the individual tax cuts and smallbusiness income deductions now set to expire in 2026. The pre-midterm elections push, which clicked into gear yesterday, is portrayed as championing the middle class and small businesses. Rep Kevin Brady, R-Texas, who heads the tax-writing House Ways and Means Committee, said making the tax cuts permanent would build on the tax law’s economic boost by adding 1.5 million new jobs and increasing wages. With the elections about four months away, polls are showing mixed support among voters for the $1.5tn package of individual and corporate tax cuts that President Donald Trump signed into law as his marquee legislative achievement. The new tax proposals are aimed at giving Republican lawmakers a selling point as they prepare to leave Washington to campaign in their districts. “It’s going to identify Republican priorities,” said Marc Gerson, a former majority tax counsel for
the Ways and Means Committee, who now heads the Washington law firm Miller & Chevalier. The new Republican outline also calls for new tax incentives for savings, by creating a “universal savings account” for families and allowing the popular, tax-free 529 college savings accounts to also be used to pay for apprenticeship fees and home schooling expenses, as well as paying off student debt. In addition, workers would be able to tap their retirement savings accounts without tax penalty to cover expenses from the birth of a child or an adoption. Start-up businesses would be permitted to write off more of their initial costs. “We plan to work off this framework to build on the growing successes of the (tax law) and ensure this energised economy continues moving forward,” Brady said in a statement. The tax law that took effect Jan 1, the most sweeping rewrite of the US tax code in three decades, is estimated to add around $1.5tn to the ballooning deficit. And deficit hawks as well as Democratic lawmakers — who were unanimous in opposing the tax legislation last year — wondered yesterday how the Republicans intended to pay for the extended tax cuts.
Make Fiscal Bill ‘first thing worked on’ after summer FROM PAGE ONE the 12 percent VAT rate’s implementation. The ORG executive director spoke out after the prime minister’s press secretary, Anthony Newbold, yesterday confirmed that MPs will today debate - and aim to pass - the Economic Empowerment Zone Bill that facilitates tax incentives for revitalising over-the-hill areas during the last parliamentary session before summer. He suggested that the Fiscal Responsibility Bill, together with other governance/anti-corruption legislation such as the Integrity Commission Bill and Ombudsman Bill, will head the government’s legislative agenda once Parliament returns in September or October. However, Carl Bethel QC, the attorney general, has suggested that the legislative pipeline for the remainder of 2018 will be dominated by bills designed to address the European Union’s (EU) and Organisation for Economic Co-Operation and Development’s (OECD) anti-tax avoidance demands, plus prepare The Bahamas for World Trade Organisation (WTO) accession by end-2019. KP Turnquest, deputy prime minister, had previously told Tribune Business he hoped to have the Fiscal Responsibility Bill approved by cabinet and brought to Parliament before the summer recess. Should that
target be missed, he promised it would come forward “immediately after the break for summer”. Mr Aubry, though, last night described Mr Newbold’s revelations as “disappointing”. He revealed that he spoke to Dr Hubert Minnis about the Fiscal Responsibility Bill when they were together in New York for the United Nations (UN) sustainable development goals conference last week, with the prime minister confirming the government is continuing to work on the legislation. “I had a chance to talk to the prime minister, and he shared they were still looking and going through the Fiscal Responsibility Bill. He didn’t give a timeline,” Mr Aubry told Tribune Business. “He said at the time it was a priority.” He had believed there would be two parliamentary sessions before the summer recess, rather than one, and said of the bill’s delay: “I would definitely express ORG’s disappointment with that. If the agenda is altered at this late stage, good, but it’s probably one and done. “We see that as such a critically important bill, one that has important implications for keeping us on focus; keeping the government focused in terms of spending discipline, and making sure we put ourselves in a more fiscally buoyant position. We urge that this not be delayed any further, and we hope this is settled and done before
NOTICE
NOTICE
NOTICE is hereby given that SHENIKA CENER of #128 Hospital Lane, Nassau, 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 25th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that DWAYNE OSCAR RIGBY of Carl Road off Claridge Road, 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 18th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
the end of session.” Mr Aubry said one positive from the further delay was that it gave ORG and other civil society groups a potential opportunity to again review the draft Bill, and see if it satisfied their concerns relating to enforcement powers and the Fiscal Responsibility Council’s involvement. He called on the government to issue the latest Fiscal Responsibility Bill version for civil society’s review, so that it can “make sure strong legislation is passed and ask for some firm commitments that this is the first thing they will work on once they get back.” The Fiscal Responsibility Bill is intended to transform the government’s fiscal discipline by locking it into specific deficit targets and longer-term debt ratios, while boosting transparency and accountability in the management of its financial affairs through enhanced public scrutiny. The latter role will be played by a newly-created Fiscal Responsibility Council, comprised of accounting, legal, financial analyst and business expertise from the private sector. Mr Turnquest previously acknowledged that the bill was vital to bridging a “trust deficit” between the government and Bahamian people, which he said stemmed from poor fiscal management, broken promises and a lack of transparency and accountability over the public finances. He described the bill’s enhanced fiscal governance and reporting mechanisms, together with deficit, spending and debt targets it must meet by law, as “a critical control feature” to ensure that the current and future governments do not repeat the wasteful expenditure and borrowing
habits of the past. The deputy prime minister also agreed that the Fiscal Responsibility Bill’s arrival on the statute book would boost business and taxpayer confidence that the government intends to deliver on its fiscal consolidation strategy. The Fiscal Responsibility Bill’s key targets require the government to slash the fiscal deficit to 0.5 percent from 2020-2021 onwards, cutting it from a sum equivalent to 5.8 percent of GDP in the 2016-2017 budget year. This means reducing it from near $700m to around $54m over a four-year period. The bill’s “first schedule” sets out a “glide path” or “road map” for achieving this, acknowledging - as the IMF stated - that “significant fiscal adjustments” are needed over the next two budget years to hit this objective. To enable the public sector and wider Bahamian economy “to achieve the fiscal objective in an orderly manner”, and avoid unnecessary shocks, the bill calls for 2018-2019 and 20192020 deficits that “shall not exceed” 1.8 percent and one percent of GDP, respectively. The first target is what the government is going for this coming fiscal year, aided by the VAT hike. The bill also sets out a “long-term” target of reducing the government’s direct debt-to-GDP ratio from the current 58 percent to “no more than 50 percent”. The year by which this target is to be achieved has to be set out in the government’s “fiscal strategy report”, which must be submitted to Parliament no later than the third week of November each year. Government spending is also to grow no faster than nominal GDP once the 0.5 percent deficit target is hit.
MARKET REPORT TUESDAY, 24 JULY 2018
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,974.13 | CHG -11.58 | %CHG -0.58 | YTD -89.44 | YTD% -4.33 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.02 1.48 0.19 4.00 9.16 6.60 5.30 11.93 2.71 1.77 8.21 6.21 11.50 7.29 13.67 13.00
52WK LOW 3.50 19.17 7.50 3.32 0.90 0.12 3.00 8.50 6.00 3.15 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson
1050.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B
PREFERENCE SHARES
1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ
E J K L M N
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00
52WK LOW 100.00
CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 22 (Series B) +
SYMBOL FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
LAST CLOSE 4.45 17.43 9.09 4.00 1.01 0.18 3.00 9.13 6.14 4.09 11.40 2.81 1.75 7.84 6.10 11.25 6.35 3.69 13.00
CLOSE 4.45 17.43 9.09 4.02 1.01 0.18 3.00 9.13 6.15 4.00 11.40 2.78 1.75 7.87 6.10 11.25 6.35 3.69 13.00
CHANGE 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.01 -0.09 0.00 -0.03 0.00 0.03 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
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
LAST SALE 100.00
CLOSE 100.00
CHANGE 0.00
108.24 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.10 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
108.34 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
VOLUME
1,000
2,000 7,155
2,750 11,000 1,000
VOLUME
EPS$ 0.268 0.932 -0.306 0.283 -0.973 0.000 -0.996 0.638 0.573 0.171 0.627 0.102 0.231 0.000 0.545 0.679 0.719 0.277 0.631
DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580
P/E 16.6 18.7 N/M 14.2 N/M N/M -3.0 14.3 10.7 23.4 18.2 27.3 7.6 N/M 11.2 16.6 8.8 13.3 20.6
YIELD 2.25% 6.48% 0.00% 5.72% 0.00% 5.56% 0.00% 7.78% 3.58% 3.00% 5.44% 2.16% 4.00% 1.07% 5.25% 4.44% 3.15% 3.25% 4.46%
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
MATURITY 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
MUTUAL FUNDS 52WK HI 2.16 4.16 2.00 180.30 157.58 1.56 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.50 1.62 1.58 1.08 6.41 7.62 5.66 8.65 10.54 9.57
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund
NAV 2.16 4.12 2.00 180.30 155.10 1.56 1.70 1.65 1.09 7.24 8.28 6.46 11.16 11.65 10.26
YTD% 12 MTH% 1.87% 3.98% -0.44% 4.28% 1.05% 2.26% 0.90% 3.44% 1.11% 6.05% 2.14% 4.33% 0.17% 4.01% 1.67% 4.18% -0.96% 0.73% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%
NAV Date 30-Jun-2018 30-Jun-2018 29-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018
MARKET TERMS 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
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 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
NOTICE NOTICE is hereby given that WILSON NOE of Kool Acres Subdivision, Nassau, 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 25th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that we, CHINTINO ARTWELL GILBERT, and LITHERA DEBBY GILBERT née MOSS of #8 Palm Breeze Drive, parents of MADISON CHANAY MARIA MOSS GILBERT, a minor, intends to change her name to MADISON CHANAY MARIA GILBERT. 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, Bahamas, no later than thirty (30) days after the date of publication of this notice.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, DERICK CHRISTOPHER MUSGROVE of The Western District of New Providence, intend to change my name to DEREK CHRISTOPHER BASDEN. 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, N.P., Bahamas no later than thirty (30) days after the date of publication of this notice.
PAGE 6, Wednesday, July 25, 2018
Contractors differ over VAT waiver FROM PAGE ONE BCA’s vice-president, said the construction industry understood that, since VAT is a pass-through tax paid by the end consumer, it will be able to offset or “net off” any 12 percent levy on their inputs against the 7.5 percent charged to their clients. Should contractors pay more in “input” VAT than they remit to the government, Ms Hanna said they would be able to claim a refund or credit from the Public Treasury - a position backed by the Ministry of Finance’s acting financial secretary, Marlon Johnson. Mr Johnson said it was “not clear” what extra guidance Mr Sands was seeking, since no forms or documentation were required by contractors for presentation
MARLON JOHNSON to the government so that they can access the 7.5 percent VAT rate on preexisting projects. He added that the Ministry of Finance’s only requirement was that contractors submit details of their pre-existing contracts to it by August 31, 2018, so it can ensure proper recordkeeping on all arrangements accessing the lower VAT rate.
The Ministry of Finance’s own transition guidance notes state: “If you are in the construction industry or a developer, special provisions have been made for you where you have contracts that are in progress or have been signed but not yet commenced. “If you have contracts in process you are not required to adjust the VAT charged on those contracts once the contract was entered into and commenced before July 31, 2018. The contract must be completed on or before February 28, 2019. “You will have to provide the Department of Inland Revenue (DIR) with details of all such contracts in the manner prescribed before 31 August, 2018. Only transactions consistent with the details provided to the DIR
PM TO UNVEIL $2BN GB DEAL
FROM PAGE ONE
unveil the developer’s commitments and plans for the former Ginn sur mer property, with its purchase and hand-over of the development said to be scheduled for a September 3 close. Tribune Business exclusively revealed that Skyline Investments, which is behind the Grand Palm Beach Acquisitions Ltd vehicle, was the prospective buyer back in September 2017. It has already held Town Meetings in West End to introduce its plans to locals, and increased chatter among realtors has preceded the closing. One missive, by the Island Property Group, states: “International developer Skyline Investments is taking over the former Ginn development on West End, Grand Bahama. They are acquiring
THE TRIBUNE by yourself will be eligible for this treatment.” Mr Sands, though, argued that contractors were still facing “challenges” over how the waiver from 12 percent VAT on pre-existing contracts was operating in practice. “One agency, Customs, requires you to pay VAT at the port of entry unless you have some concrete document, letter or form from the VAT Department,” he told Tribune Business. “You submit 7.5 percent but you are paying 12 percent at the port of entry.” Describing the extra 4.5 percentage points as an “out of pocket cost” being incurred by contractors, Mr Sands said such concerns were raised when DIR official, Keith Worrall, addressed a recent BCA monthly luncheon meeting. “We’re still paying 12 percent, even though he’s saying to put in the returns and pay at 7.5 percent,” the BCA president added. “The actual cost you’re paying is 12 percent. While we’ve been given a waiver, our cost point is still 12 percent. “We have to come up with 12 percent to pay for goods and services. Everything we import is at 12 percent. It is
being felt even though on the back end they’re saying to remit less. The challenge is we would have liked the industry not to pay 12 percent across the board to all vendors and suppliers. “The waiver has no effect as the cost out-of-pocket is still out-of-pocket. There’s still some kinks in the system to work out, but the benefit is not felt for us. We have to deal with the increased cost, and work through with the clients to find an extra 4.5 percentage points.” This, though, was contradicted by Ms Hanna, who agreed with Mr Johnson that since VAT is a pass-through to the endconsumer, contractors can net off the 12 percent “input” VAT against what they charge clients and claim refunds/credits if they find themselves in a negative position. “I just think the message has been a bit distorted,” she told Tribune Business, “but the construction industry has been given the pre-qualification and information on how to operate. It’s up to the industry to manage and keep records, and anything they’re paying 12 percent on, they are
eligible to put that forward so they can get a rebate. The law allows you to pass on the extra expense; you don’t absorb it.” Ms Hanna said media coverage elsewhere “was not right”, and had portrayed the issue in “a negative light”. She suggested it was not the message Mr Sands intended, adding that the sector had been “well informed”. The Ministry of Finance’s Mr Johnson, meanwhile, reiterated that contractors did not need to obtain documents from it giving them permission to acquire building materials at a 7.5 percent VAT rate. “We’re not clear what specific guidance he’s looking for,” the acting financial secretary said of Mr Sands. “The long and the short is my assumption is there may have been confusion as to how it applies. There’s nothing to claim from the Ministry of Finance to allow them to do it. “They [contractors] will have to provide details of pre-existing contracts. We will give them the form and necessary information on the contract, so we’re able to reconcile on their returns as necessary.”
the 2,012 acre development as well as the 550-acre Old Bahama Bay Resort. The new development will be called Grand Bahama Bay. “Skyline’s vision is to create a self-maintained, secluded, high-end, low impact innovation community that will provide guests with an unparalleled Bahamian work and life experience... Skyline will use modern innovations and green technology to make sure it remains that way.” The Island Property Group added: “The initial goals are to bring in the Marriott hotel and the Ritz hotel, as well as a casino and finish the world-class Arnold Palmer Golf course. They are also going to add 72 slips to the existing marina. “A resident can have an appetising breakfast at one of the site’s luxury dinning options, shop at the central commercial district, visit a doctor in the nearby modern health facilities, all just a 25 minute flight from the onsite airport to the executive airport in Fort Lauderdale, Florida. “To further capitalise on these benefits, a smart city will act as a headquarters to high tech start-ups, personal businesses and consultancies. With over $2bn to be invested, this project will enhance the West End community and help make
western Grand Bahama a vibrant hospitality hub. They are poised to become a major player in The Bahamas hospitality industry.” Skyline Investments, which has $500m in assets and a focus on hotel/resort developments, previously said it plans to develop a new 120-room hotel, add 75 marina slips and upgrade the airport and golf course within the first 24 months post-acquisition. It also wants to develop a “Smart City” that will act as a headquarters for high technology start‐ups, personal businesses and consultancies. Tribune Business sources previously suggested that Skyline’s negotiations have involved the added complication of dealing with two vendors. What would have been the core project was owned by Lubert-Adler, the Philadelphia-based investment bank that was Ginn’s financing partner. It held 280 acres that were earmarked as the site for the hotels and casino, and its landholdings also include key amenities such as the airport, marina and utilities. Lubert-Adler also controlled the Old Bahama Bay Resort, the golf course, the existing marina, commercial facilities such as the restaurants and retail, and associated operational facilities.
But a Credit Suisse-led lending syndicate took possession of the remaining 1,476 acres at the former Ginn sur mer project after Ginn Development Company defaulted on its $276m loan. It effectively inherited the real estate component of the Ginn project, and hired Replay Resorts to master plan the property. Lubert Adler and Credit Suisse have worked together in the belief this is the best way to maximise their exit price - and potential recovery - by selling the former Ginn sur mer as one. Skyline Investments, which is listed on the Tel Aviv Stock Exchange, describes itself on its website as having $500m in assets. It specialises in real estate investment and development related to the hotel/resort industry. It describes itself as “sourcing new acquisition opportunities to grow and diversify its cash flow in North America”, with an emphasis on geographical diversification. Current properties include the Hyatt Regency at The Arcade in Cleveland; the Renaissance Cleveland Hotel; Bear Valley Ski Resort in California, plus a variety of mixed-use resort developments throughout Canada.
THE TRIBUNE
Wednesday, July 25, 2018, PAGE 7
Ivanka Trump is shutting down her clothing company NEW YORK Associated Press IVANKA Trump is shutting down her fashion line of dresses, shoes and handbags that became a target of political boycotts and spurred concerns about conflicts of interest after her father was elected. The president’s daughter said in statement she made the decision so she could focus more on work as a White House adviser. She had stepped away from the day-to-day management of her company when she joined President Donald Trump’s administration. “After 17 months in Washington, I do not know when or if I will ever return to the business, but I do know that my focus for the foreseeable future will be the work I am doing here in Washington,” she said. She called the move the “only fair outcome for my team and partners”. The Ivanka Trump brand has been buffeted by politics since she joined the White House early last year. Sales appeared to surge at times due her celebrity as the US president’s daughter — White House adviser Kellyanne Conway once urged on Fox News for people to “go buy Ivanka’s stuff” — only to get battered as those who disliked her father’s policies urged shoppers to boycott the line. Nordstrom dropped the Ivanka Trump line last year, citing slowing sales, and recently Hudson Bay reportedly did the same. The company said that its business was strong, and the decision to shut down
had nothing do with its performance. Shutting down the brand means 18 people will lose their jobs. Analyst Neil Saunders, managing director of GlobalData Retail, said that “while the company is still viable, doing business has become far more challenging and these problems will only increase.” Ivanka Trump recently has been encouraging US companies to pledge to hire American workers. Her own company has been criticised for making its products in Chinese factories, for the conditions in those factories, and for being granted trademarks by foreign governments such as China that would want to curry favour with the president. Her announcement comes amid a worsening trade fight between the United States and China. President Trump is seeking to drive China to the negotiating table and rectify what he sees as years of unfair trade practices. The White House has imposed tariffs on $34bn of Chinese imports and has itemized a list of $200bn more in goods that may face tariffs by September. Neither of those tariffs would cover the clothing and handbags Ivanka Trump sells. But if the president were to make good on his threat to tax all $500bn in Chinese imports, that would raise the price of everything her company imports from China. Since it is a private company, it is difficult to judge just how well Ivanka Trump’s business has been faring. The bulk of her assets —more than $50m
worth — is contained in a trust that holds her business and corporations. The trust generated over $5m in revenue last year, according to a financial disclosure report filed with the government. When Ivanka Trump joined the White House as adviser to her father, she agreed to several restrictions so that her financial interest in the business would not conflict with her public role as a White House adviser. Still, the company drew criticism for benefiting from her White House ties. In April last year, the Chinese government granted her company provisional approval for three new trademarks, the same day she and her husband Jared Kushner dined with the president of China and his wife at President Trump’s Mar-a-Lago resort. Ivanka Trump’s brand has said the 2017 Chinese trademarks were filed defensively to protect against squatters using her name. China has said its trademarks policy regarding Ivanka Trump’s company is in line with normal legal practice. The Ivanka Trump brand has also come under criticism for conditions at factories where its products were made. The Associated Press spoke with workers last year at an Ivanka Trump shoe factory in Ganzhou, China, who described long hours, low pay and abuse. The company said at the time that the “integrity” of its supply chain was a “top priority” and that it takes such allegations “very seriously”.
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PAGE 8, Wednesday, July 25, 2018
THE TRIBUNE
US announces billions to help farmers hurt by Trump tariffs WASHINGTON Associated Press THE government announced a $12bn plan yesterday to assist farmers who have been hurt by President Donald Trump’s trade disputes with China and other trading partners. The plan focuses on Midwest soybean producers and others targeted by retaliatory measures. The Agriculture Department said the proposal would include direct assistance for farmers, purchases of excess crops and trade promotion activities aimed at building new export markets. Officials said the plan would not require congressional approval and would come through the Commodity Credit Corporation, a wing of the department that addresses agricultural prices. “This is a short-term solution that will give President Trump and his administration the time to work on long-term trade deals,” said Agriculture Secretary Sonny Perdue. Officials said the direct payments could help producers of soybeans, which have been hit hard by the Trump tariffs, along with sorghum, corn, wheat, cotton, dairy and farmers raising hogs. The food purchased from farmers would include some types of fruit, nuts, rice, legumes, dairy, beef and pork, officials said. In Kansas City, meanwhile, Trump told a veterans’ convention that he was trying to renegotiate trade agreements that he said have hurt American workers, and he asked for patience ahead of key talks. “We’re making tremendous progress. They’re all coming. They don’t want
PRESIDENT DONALD TRUMP
to have those tariffs put on them,” Trump told the Veterans of Foreign Wars national convention. “We’re opening up markets. You watch what’s going to happen. Just be a little patient.” Agriculture officials said the payments couldn’t be calculated until after harvests come in. Brad Karmen, the USDA’s assistant deputy administrator for farm programmes, noted that the wheat harvest is already in, so wheat farmers could get payments sooner than other growers. But officials said soybeans were likely to be the largest sector affected by the programs. Trump declared earlier Tuesday that “Tariffs are the greatest!” and threatened to impose additional penalties on US trading partners as
he prepared for negotiations with European officials at the White House. Tariffs are taxes on imports. They are meant to protect domestic businesses and put foreign competitors at a disadvantage. But the taxes also exact a toll on US businesses and consumers, which pay more for imported products. The Trump administration has slapped tariffs on $34bn in Chinese goods in a dispute over Beijing’s high-tech industrial policies. China has retaliated with duties on soybeans and pork, affecting Midwest farmers in a region of the country that supported the president in his 2016 campaign. Trump has threatened to place penalty taxes on up to $500bn in products imported from China, a move that would dramatically ratchet
up the stakes in the trade dispute involving the globe’s biggest economies. Sen Charles Grassley, R-Iowa, said the administration’s move was “encouraging for the short term. What farmers in Iowa and throughout rural America need in the long term are markets and opportunity, not government handouts”. Indeed, the plan magnified objections among many Republicans that the tariffs amount to taxes on American consumers. House Speaker Paul Ryan of Wisconsin said lawmakers are making the case to Trump that tariffs are “not the way to go”. Sen Bob Corker, R-Tenn, said the administration “finally seems to understand that the Trump-Pence tariffs are hurting the American people. These tariffs are
a massive tax increase on American consumers and businesses, and instead of offering welfare to farmers to solve a problem they themselves created, the administration should reverse course and end this incoherent policy.” Before departing for Kansas City, Trump tweeted that any US trade partner needs to either negotiate a “fair deal, or it gets hit with Tariffs. It’s as simple as that”. The rhetoric came as the president has engaged in hard-line trade negotiations with China, Canada and European nations, seeking to revise trade deals he says have undermined the nation’s manufacturing base and led to a wave of job losses in recent decades. The imposition of punishing tariffs on imported
goods has been a favored tactic by Trump, but it has prompted US partners to retaliate, creating risks for the economy. Trump has placed tariffs on imported steel and aluminum, saying they pose a threat to US national security, an argument that allies such as the European Union and Canada reject. He has also threatened to slap tariffs on imported cars, trucks and auto parts, potentially targeting imports that last year totaled $335bn. The president is meeting with European Commission President Jean-Claude Juncker today. The US and European allies have been at odds over the president’s tariffs on steel imports and are meeting as the trade dispute threatens to spread to automobile production.