WEDNESDAY, SEPTEMBER 7, 2016
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PM gets last chance to avoid ‘shut down’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Thursday meeting ‘critical’ for trade union action
The Prime Minister’s meeting with trade union leaders tomorrow is “critical” in determining whether the labour movement will make good on threats to “shut the town down” in response to numerous alleged grievances. Obie Ferguson, the Trades Union Congress (TUC) president, yesterday expressed dissatisfaction with Monday’s meeting between the unions and Mr Christie, saying the outcome was “not good at all”. He explained that rather than directly addressing the union movement’s specific grievances, the Prime Minister and other government officials merely en-
TUC chief: ‘We can’t let Sandals get away’ List Melia, Water Corp and other grievances Obie Ferguson gaged in a “general discussion” of the issues, with “nothing definitive” settled. Indicating that the trade unions were prepared to give the Government one last opportunity to satisfactorily respond to a variety of industrial matters,
Mr Ferguson said they were due to meet with Mr Christie and his advisers again tomorrow. He warned that “Thursday is a very critical day” in terms of determining the trade union movement’s next step, and hinted that some form of co-ordinated
industrial action may soon occur with the words: “We’re going to do what we have to do.” Apart from Sandals’ recent termination of its 600-strong workforce, Mr Ferguson said labour-related issues at the Melia Nassau Beach and Grand Lucayan resorts, Cable Bahamas, and outstanding industrial agreements for Water & Sewerage Corporation middle management and high school principals, were high on the unions’ agenda. “What we are saying now, the joint labour movement, is that we are insisting these matters be resolved as a matter of urgency,” the TUC president told Tribune Business. “We are committed to doing what we have to do. If it’s necessary, we’ll shut the town down. See pg b2
Automatic tax exchange set for October discuss By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
K. Peter Turnquest
Dionisio D’Aguilar
Baha Mar sceptics challenge Chinese ‘goodwill gesture’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Sarkis ally: ‘Won’t do something for nothing’
Efforts to market Baha Mar creditor payouts as “a goodwill gesture” by its secured creditor were challenged yesterday, a key Sarkis Izmirlian ally saying: “The Chinese don’t do something for nothing.” Dionisio D’Aguilar suggested that “every Bahamian will laugh” See pg b5
Claims process excludes CCA sub-contractors Non-employees have 10 days to submit paperwork
Surplus banking liquidity at $1.6bn By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Excess liquidity in the Bahamian commercial banking system increased by $271.3 million in the year to end-July 2016, with the new $1.586 billion high illustrating the continuing difficulties in finding suitable borrowers. The Central Bank’s report on July’s economic developments showed that surplus liquid assets rose by $76.26 million that month, a 41.5 per cent increase upon the $53.89 million growth in July 2015. And for the 12 months to end-July 2016, they grew at a pace 24 per cent higher than the expansion for the same period length the year before. “Bank liquidity is poised to remain at robust levels, as the softness in domestic demand and sustained conservative lending practices continue to restrain credit growth,” the Central Bank said with deft understatement. The huge ‘overhang’ in excess liquid assets in the Bahamian commercial banking system also helps to explain why deposit rates are so low, pushed down by an expanded money supply. “External reserves firmed by $4.5 million to $1.058 billion, after a similar $6 million gain a year-earlier,” the Central Bank added, with the 12-month figures showing a more robust $249.36
Grows $271.3m in 12 months to end-July Pushes deposit rates down amid lack of borrowers million increase compared to $177.34 million the year before. As for credit quality in the Bahamian commercial banking system, ‘bad loans’ remained relatively stable compared to their June levels. “In July, total private sector loan arrears expanded by $13.2 million (1.2 per cent) to $1.121 billion, and by 15 basis points to 18.8 per cent of total private sector loans,” the Central Bank said. “Underlying this outturn, the non-performing component - loans in excess of 90 days in arrears - rose by $8.3 million (1 per cent) to $851.7 million, and by nine basis points to 14.3 per cent of the aggregate. “Similarly, short-term delinquencies (31 to 90 days) firmed by $4.9 million (1.8 per cent) at $269.6 million, resulting in a seven basis points uptick in the attendant ratio to 4.5 per cent of total private sector loans. For the year-over-year comparisons, the total arrears rate stood 1.2 percentage See pg b7
The Bahamian financial services industry is hoping to start consultation on the proposed legislative regime for automatic tax information exchange by next month, as it bids to remain “the destination of choice” in the Western Hemisphere. Tanya McCartney, the Bahamas Financial Services Board’s (BFSB) chief executive, told Tribune Business that implementing the Common Reporting Standard (CRS) for automatic tax information exchange would not undermine this nation’s competitive position. She based this on the fact that more than 90 countries, including the world’s most developed nations and the Bahamas’ international financial centre (IFC) rivals, had committed to the initiative,
Financial sector hopes CRS regime set by year-end Minister ‘confident’ 2018 implementation will be met Bilateral approach ‘more suited’ to tax system thus ensuring a ‘level playing field’. And, while some have questioned whether the Bahamas can implement the CRS on a bilateral - as opposed to multilateral - basis, Ms McCartney said key IFC competitors such as Hong Kong and Singapore were See pg b4
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Brace for post election rise ‘to save’ BPL Ex-minister: Energy tariffs to rise ‘no matter’ winner Says politicians ‘lack guts’ to come clean on woes PowerSecure a ‘scapegoat’ without $650m bond By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Bahamians were yesterday warned to brace for electricity rate rises after the 2017 general election “no matter who the Government is”, a former Cabinet Minister arguing this was “essential to save” Bahamas Power & Light (BPL). Phenton Neymour, who had ministerial responsibility for the then-BEC under the Ingraham administration, told Tribune Business that current politicians “lacked the guts” to come clean with the public on the extent of BPL’s problems. Suggesting that the Government did not know the true cost of fixing BPL’s woes, and implying that it might be more than the $650 million targeted in the proposed rate reduction bond (RRB) issue, Mr Neymour said the failure to place this had effectively handicapped the utility’s new manager. He argued that PowerSecure International was effectively being employed “as a scapegoat and excuse” for BPL’s problems, having been denied the necessary authority to introduce the reforms necessary to turn the energy monopoly around. Mr Neymour also blamed a “lack of planning” by the Christie administration for the failure to bring BPL’s latest rental generators online, as it had not provided enough connections to meet the increase in their usage. See pg b4