WEDNESDAY, NOVEMBER 2, 2016
business@tribunemedia.net
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Auto dealer chief warns: ‘I’m considering quitting’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Bahamas Motor Dealers Association’s (BMDA) president yesterday said he was “seriously thinking” of exiting the auto business, with the 5,180 increase in vehicle imports highlighting the “oversaturated” market’s woes. Fred Albury, who is also principal of the Auto Mall, told Tribune Business that several auto dealerships were likely to close in 2017 unless current industry trends were reversed. He added that the figures released by the Nassau Container Port’s operator, which showed
Auto Mall boss ‘can’t survive’ in current conditions Plans downsize, used car exit in 2017 New Year Warns of ‘demise’ of some auto dealers a 5,180 year-over-year rise in vehicle imports during the 12 months to end-June 2016, exposed how the Bahamian auto market had “switched”.
Gray confirms nod for $2bn agriculture talks with Chinese By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net
But stresses nothing before Govt for approval
A Cabinet Minister yesterday confirmed he had given permission for the Bahamas’ ambassador to China to seek out agriculture and fisheries investments, in a bid to reduce this nation’s $900 million food import bill. V Alfred Gray, minister of agriculture and marine resources, said the $2.1 billion project proposed by ambassador, Paul ‘Andy’ Gomez, and his embassy could help the Bahamas improve its ‘food security’. Then, in comments that seemed to undercut the rationale for the Bahamas Agriculture and Marine Science Institute’s (BAMSI) ‘reason for being’, Mr Gray said Bahamians “lack interest” in large-scale agricultural production. However, he stressed that the proposal by Mr Gomez, an accountant and former Grant Thornton (Bahamas) partner, and his embassy, was nowhere near the approval stage. No
Bahamians ‘lack interest’ in large-scale farming Seemingly undercuts rationale for BAMSI formal submission has yet been submitted to any of the Government’s various investment agencies. “I know that the newly-appointed ambassador to China had approached my ministry with a view to finding out whether it was OK for them to enter into discussions with respect to Chinese investments in the Bahamas in fisheries, factories and agricultural pursuits,” Mr Gray said. “I felt as minister that was a good thing if we could get them to invest in agriculture, because agriculture is one of the industries in the Bahamas where See pg b5
GB eyes foundation for storm protection By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Grand Bahama’s business community is assessing whether to form its own foundation so that disaster recovery funds will be available after future catastrophic hurricanes. Kevin Seymour, the Grand Bahama Chamber of Commerce president, confirmed to Tribune Business that the proposal was in its “embryonic” stages, but initial talks had already been held with the Grand Bahama Port Authority (GBPA) and larger businesses. “We’re looking at forming our own foundation,” he said. “Traditionally, Grand Bahama, Abaco and Bimini have fallen into a hot hurricane spot. “It’s not a question of if, but when, this happens again. We want to be in a better position to hit the ground running, and do everything necessary to get the business community back on stream as quickly as possible.” Grand Bahama, whose economy has yet to fully recover from the Royal Oasis closure following Hurricanes Frances and Jeanne in 2004, was dealt another devastating blow last month by Hurricane Matthew’s Category Four winds and storm surge. With many businesses, especially small and mediumsized enterprises (SMEs), struggling to rebuild and
Chamber, businesses talk disaster recovery financing Initiative in ‘embryonic stages’ Island looking to coin ‘GB strong’ slogan reopen, the Grand Bahama Chamber and wider business community are seeking to develop a permanent disaster relief financing mechanism to ensure private sector recovery. “It’s very much in the embryonic stages,” Mr Seymour told Tribune Business. “We’ve had some good conversations with the GBPA and large members, and every indication so far is that it’s something we need to be doing, given the dire straits some of the businesses find themselves in now.” He added that the private sector and wider community were now looking to adopt the phrase ‘Grand Bahama strong’ to reflect the island’s post-Matthew resilience. “In talking about the funding, we were discussing something to uplift the spirits of the people of Grand Bahama,” Mr Seymour told Tribune Business. See pg b5
Mr Albury said that with no increase in ‘new car’ sales recorded by the BMDA or its members, the vehicle import increase seen by Arawak Cay Port Development Company (APD) related entirely to used ‘autos’. With ‘new auto’ dealers still unable to generate the vehicle sales so essential to profits, Mr Albury again railed at the ‘unfair competition’ posed by roadside vendors who - without the same overheads and taxpaying obligations - were able to undercut established, legitimate businesses. The Auto Mall chief said he planned to further downsize his business in 2017 in response to
prevailing market conditions, exiting the ‘used car’ business himself and shrinking operations at his Wulff Road site “considerably”. APD said vehicle imports during its 2016 financial year were 1,905 more than expected, and Mr Albury told Tribune Business: “The numbers speak for themselves. “That’s where the market is. There was no increase in the new cars. That’s strictly used cars. That tells you the amount of used cars coming in over the past year, and shows you how much the market has shifted.” ‘New car’ sales for 2015 were down 38 per cent year-overSee pg b4
‘Pie in the sky’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Government was yesterday urged to deal with the “thousands of Bahamians” awaiting answers to Crown Land applications before handing 10,000 acres to the Chinese, a well-known QC describing the Andros proposal as “pie in the sky”. Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business that the Government needed to prioritise Bahamian interests over foreign when it came to Crown Land grants or leases. He was responding after it was revealed that the Bahamas’ embassy in Beijing is pursuing a $2.1 billion Chinese agricultural and fisheries investment that would require the leasing of 10,000 Crown Land acres in Andros. This could double to 20,000 acres if the 100 companies involved in the proposal, which has yet to be firmed up and submitted for government See pg b7
QC ‘absolutely opposed’ to China Andros proposal Urges Govt to prioritise Bahamians for Crown Land DNA calls for Land Bureau to aid wealth creation
Fred Smith QC
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Bran threatens ‘peaceful revolt’ over proposed Chinese deal DNA leader slams Beijing embassy’s plan Fears Chinese domination from agri-fisheries plan Labels Bahamian joint ventures ‘appeasement’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Democratic National Alliance’s (DNA) leader yesterday threatened to lead “a peaceful revolt” over the proposed Chinese agricultural deal, arguing that it was merely trying to “appease” Bahamians by promising joint ventures. Branville McCartney and other opposition politicians reacted furiously to the Christie administration giving permission for the Bahamas’ Beijing embassy to seek out a potential $2.1 billion tie-up that would involve 10,000 acres of Crown Land. The DNA leader argued that the proposal, which the Government yesterday emphasised was not remotely close to coming before it, or receiving the necessary approvals, would be “to Branville the detriment of McCartney the Bahamian people” if it proceeded as is. Seeking to generate a mood of national indignation, Mr McCartney urged Bahamians to set aside their political differences and unite to oppose an investment policy that he said relegated them to “third class citizens”. “I want to have a peaceful revolt against this, where we are able to galvanise all rightthinking Bahamians, notwithstanding their political affiliations, to stand up against this,” Mr McCartney told Tribune Business. “I pray to God that it does not happen, but the odds are that it will, where we will be See pg b4