FRIDAY, OCTOBER 21, 2016
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‘Fiscal peril’: 120 per cent debt fear after next disaster By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Politicians “have no business being in power” if they fail to address the Bahamas’ fiscal peril, a reform advocate warned yesterday, adding that another Matthew-type hit could produce a 115-120 per cent debt-to-GDP ratio. Robert Myers, a principal with newly-formed civil society group, the Organisation for Responsible Governance (ORG), said Matthew had delivered the ultimate incentive for the Bahamas “to get our fiscal house in order”. With the Government
* ‘No business in power’ if issue not tackled in campaign * Governance advocate: Matthew ultimate warning * ‘Must get fiscal house in order before next time’
facing a balancing act between financing disaster relief and avoiding a ‘junk’ creditworthiness downgrade, Mr Myers argued that aspiring politicians did not deserve to be elected if they failed to address the Bahamas’ fiscal woes - and a plan for tackling them during the upcoming election campaign. Emphasising that the country would “have been in real trouble” had Matthew scored a direct hit on Nassau, as opposed to its
Gov’t ‘surprised’ by Renew withdrawal
* Minister: ‘Premature’ to say if landfill firm returns * Awaiting Attorney General’s Office advice * Slams Gov’t criticism as ‘incredibly disingenuous’ * Ministry: Company lacks funding, management By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A Cabinet Minister yesterday admitted the Government had been “surprised” by Renew Bahamas’ decision to suspend its management of the New Providence landfill, with no decision made yet on whether the company will return. Kenred Dorsett, minister of the en- KENRED DORSETT vironment and housing, told Tribune Business that he was awaiting legal advice from the Attorney General’s Office before determining the Government’s “next step” on the landfill. He said it was “premature” to say whether Renew Bahamas will be allowed to return as the landfill operator/ manager even if it wanted to, adding that he was seeking to arrange a meeting next week of all relevant parties - the company and government agencies - to determine the way forward. Mr Dorsett also conceded that he was “disappointed” by Renew Bahamas’ failure to restart its landfill-based recycling operation, which had been shut down for several months following fire that damaged the baler. And the Minister hit back at charges by Michael Cox, Renew Bahamas’ chief executive, that the Government had failed to properly engage with the company over the SEE PAGE 4B
National lottery ‘must be looked at’ post-Matthew
* Gaming minister: Storm damage revives issue * $3m available for relief from web shop chains By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net The Minister of Tourism yesterday acknowledged that debate over a National Lottery would be reignited following the $600 million in damage created by Hurricane Matthew, adding that $3 million was already available to assist from the web shops. Obie Wilchcombe explained that the $3 million had been raised from the 1 per cent levy on web shop chains, which are required to contribute this sum to finance social and community causes. He added that these funds have now been placed in a foundation that can be accessed for hurricane relief purposes. Addressing Parliament during the debate on a resolution to raise $150 million for post-Matthew restoration, Mr Wilchcombe addressed whether a national lottery was a potential mechanism for disaster relief financing after being prompted by Fort Charlotte MP, Andre Rollins.
“It is a good argument about the lottery. “It has to be given consideration, but there is a foundation and those funds can be used for community development,” the Minister said. “There are funds there now, around $3 million, that can be utilized now. “If the Government wants to access it it can be utilised. They [gaming houses] are making contributions. They have been incredibly good for the community. “The question is, at the end of it all, do we consider a lottery in the future? How soon it will be is another question, but it has to be looked at.” Mr Wilchcombe continued: “It is a billion dollar industry. “The gaming houses employ 3,600 Bahamians. Our casinos employ just over 1,000. The contribution they make to the community and taxes they pay are more than those paid by the casinos. “Save but one, all of them pay and they pay on time. They are good, prudent businessmen.”
eye passing some 15 miles away, Mr Myers added that the “failure to save for a rainy day has come upon us”. He told Tribune Business: “We’ve got to get our house in order before we have one of these massive events. If we have a global recession or a Category Four or Five storm hits Nassau, our debtto-GDP could go to 115-120 per cent.” The Bahamas’ debt-toGDP ratio, as measured by the Central Bank’s revised
2016 second quarter report, currently stands at just below 75 per cent - a figure that is still in excess of the 70 per cent ‘danger threshold’ established by the IMF. With Hurricane Matthew having inflicted a $600 million repair bill, according to Prime Minister Perry Christie, the Government’s Budget projections and medium-term fiscal consolidation projections have been massively thrown off. The Christie administration has already been
ROBERT MYERS forced into $150 million of unanticipated borrowing to finance Matthew-related infrastructure and public building repairs, plus assist SEE PAGE 5B
* Munroe warns of ongoing litigation’s peril * Appeal Court: Developer doesn’t own dolphins * Privy Council appeal ‘already been filed’
The developer behind the controversial $12 million Blackbeard’s Cay project will appeal its latest legal reversal to the Privy Council, its attorney yesterday warning opponents against making another 100 Bahamian unemployed “in this climate”. Wayne Munroe QC told Tribune Busi-
‘Flagship’ job centre to replace Clarence Bain * Thompson Boulevard property to be demolished * Part of $50m initiative to boost jobs and productivity * Gov’t placing just 2% of registered job seekers
Blackbeard’s QC: ‘Don’t make 100 more unemployed’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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ness that “an appeal has already been filed” on behalf of Blue Illusions after the Court of Appeal upheld a previous verdict that the developer did not own the project’s eight dolphins. Dame Anita Allen, the Appeal Court’s president, affirmed the earlier Supreme Court decision that found the dolphins’ supplier, the Honduran-based Instituto De Ciencias Marinas (IMS), was the SEE PAGE 7B
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Government is planning to demolish the Clarence A. Bain Building and replace it with a “flagship one-stop shop centre” for assisting employment seekers, in a bid to improve its 2 per cent job placement success rate. The plan is part of a $50 million initiative, funded with matching 50/50 contributions by the Government and InterAmerican Development Bank (IDB), to boost workforce productivity and economic output by improving skills levels among young Bahamians. The Clarence A. Bain Building, a long-time government property and landmark on Thompson Boulevard, has been wellknown to Bahamians and residents as the location for diver and vehicle licensing, and inspection. It has also been home to the Department of Labour, but this agency has now moved to the former City Markets building on Rosetta Street, while the Road Traffic Department has relocated to the Thomas A. Robinson stadium. An IDB document, obSEE PAGE 8B