Bahamas News

The Ingraham Administration’s second budget in its third non-consecutive term contains a number of items calculated to help the average Bahamian feel the impact of the fiscal plan for the next budget year.

As a measure to address the steadily climbing cost of the Bahamas Electricity Corporation’s fuel surcharge, Prime Minister Hubert Ingraham on Wednesday announced a two-year suspension on the 17 percent taxes (10 percent customs duty, seven percent stamp tax) on BEC’s fuel imports.

“This is expected to enable BEC to function without further increasing the costs of electricity,” Mr. Ingraham said.

Utilities Minister Phenton Neymour touted the decision as evidence of the government’s commitment to addressing the nation’s energy concerns.

“BEC at this particular time is in a very poor financial state and the government is providing relief to BEC by providing the concession for two years of customs duty that is charged on the fuel – the 10 percent customs duty – and in addition to that we are also providing a concession for two years on the stamp tax – the seven percent stamp tax,” Mr. Neymour told the Bahama Journal.

“[This] adds up to a total concession of 17 percent, which will assist BEC and also assist in reducing the fuel surcharge that customers feel, as the stamp tax is a component of the fuel surcharge that the Bahamian people pay.”

The prime minister also announced in his Budget Communication to Parliament that the 2008/2009 fiscal plan includes a $19.6 million pay increase for the public service, drawing raucous applause from government MPs.

The increase includes the $750 annual increase to the base pay of all public officers, plus a $1,250 increase for each teacher in the public school system.

Education Minister Carl Bethel sought to put the pay raise for teachers in context when he spoke to the Bahama Journal.

“That is pursuant to the industrial agreement, but it reflects, I do believe, the great importance that successive governments, all governments of The Bahamas place upon honouring the sacrifice and the service of our teachers,” Mr. Bethel said.

NASSAU RESTORATION BILL

Prime Minister Ingraham also introduced a Bill for the City of Nassau Revitalization Act, which Mr. Ingraham called landmark legislation. The act is aimed at addressing what the PM called the unacceptable state of urban blight afflicting the downtown area, and it includes incentives like tax breaks intended to generate investment in the capital city over the next five years.

“Concessions available will include exemption from customs duty on all materials necessary for the investment imported into the country, purchased or taken out of bond; exemption from real property taxes on all buildings comprising the investment, all additions thereto and land upon which the investment is situated, and exemption from any excise taxes that might be levied,” Mr. Ingraham said.

“We fully expect this bill when enacted will serve as a catalyst for investment in our capital city, restoring the city centre to its former status as a charming and picturesque capital catering to the needs and tastes of individuals of wide-ranging interests,” he said.

HELP FOR FAMILY ISLANDS

In a similar vein, the prime minister announced the reenactment of the Family Island Development Encouragement Act, which he said would enter into effect on July 1, 2008, with the beginning of the budget year.

For those investing in the named islands, the act will provide duty-free and excise tax-free import of all construction material to be used for the construction of a new building or the rehabilitation, remodeling or extension of a new or existing building, and duty-free and tax-free import of any machinery used for the clearing of land for farming or construction carried out in the named Family Islands.

Those islands are Sweetings and Water Cays (Grand Bahama), Grand Cay and Moores Island (Abaco), Current Island (Eleuthera), Andros, Cat Island, Rum Cay, San Salvador, Long Island, Crooked Island, Ragged Island and Cays, Long Cay, Acklins, Mayaguana and Inagua.

REVENUE MODERNIZATION

Mr. Ingraham also announced the reform of the Customs Tariff, with effect from July 1, 2008.

He said the government is amalgamating the customs tariff rates with the corresponding stamp duty rates, and then extracting those items from the tariff that are treated as excises in international practice and placing them in a new Excise Act.

“These include the luxury items such as perfumes and tobacco and cigarettes, and also high value items such as vehicles and petroleum,” Mr. Ingraham explained. “Basically the sum of the present rates of customs duty and stamp duty will become the new excise rates under the new Excise Act.

“The purpose of this exercise is to follow international practice and also to remove these taxes from any reduction exercise which might be necessary as a result of admission into the World Trade Organization.”

Source: Bahama Journal

There is a clearer picture of the performance of the economy in the first six months of the 2007/2008 fiscal year ahead of Prime Minister Hubert Ingraham’s Budget Communication planned for next week Wednesday in the House of Assembly.

The government had vowed to undertake a path of fiscal discipline as the worldwide economy continued to slow, triggered by international pressures.

According to figures contained in the Central Bank of The Bahamas’ Annual Report and Statement of Accounts for 2007, in the last calendar year the national debt stood at more than $3 billion, the fiscal deficit almost doubled in size between July and December 2007 and there was a contraction in government revenue.

With the Bahamian economy moderating as it did, there was a slowing of total revenue by 2.6 percent to $609.7 million which was 41.1 percent of the budget estimates, as tax and non-tax yields declined by 1.1 percent and 16.4 percent respectively, the report said.

Analysts reported that there was a 4.8 percent hike in expenditures to $708.9 million which represented 44.1 percent of the approved budget. Also, the broad based growth in current spending overshadowed the contraction in capital outlays.

A few months ago, the Free National Movement Government provided a 2007/2008 Mid Year Budget Statement. When he delivered the report, Prime Minister Ingraham said revenue forecast for the first six month of the 2007/2008 fiscal year was $681 million which represented 45.7 percent of the revenue forecast for the full year.

He also reported that actual revenue for the six-month period was $628.1 million or $52.9 million below forecast, which was considerably less than the recurrent under spending of $75.3 million in the first half.

On the matter of recurrent expenditure, the prime minister also said that it was $75 million below forecast between July and December 2007.

In its report on fiscal performance, the Central Bank explained that tax receipts of $558.2 million that accounted for 92 percent of total revenue, included a 6.4 percent hike in taxes on international trade and transactions.

There were significant contributions from property taxes, which grew by 39.4 percent to $40.4 million and taxes on selected tourism services grew by 62.1 percent to $17.4 million because of a more than two fold hike in hotel occupancy taxes that reached $12.2 million.

Revenue collected from business and professional license taxes also grew by 43 percent to $18.6 million comprising higher inflows from international business companies and company fees and registrations. There were smaller contributions from taxes on motor vehicles and departures.

In a new assessment released this week, the International Monetary Fund [IMF] said it still sees continued serious risks to global financial stability despite some signs of normalization in global credit markets. It also urged policymakers to avoid complacency and take steps to restore confidence, while at the same time preparing for further pressures.

While the IMF has projected that world growth will slow to 3.7 percent in 2008 from 4.9 percent last year, there is a concern that global growth could weaken more than generally anticipated.

On the home front, the projections for the economy are unchanged.

“We are anticipating mild growth particularly for the first half of this year with some increased momentum towards the end of the year as some of the foreign investment projects that are already in the pipeline get started,” Central Bank Governor Wendy Craigg told the Bahama Journal.

Hefty levels of foreign direct investment that have been channeled into the tourism sector through mega resorts have provided a substantial economic boost.

In its report, the Central Bank also documented figures regarding recurrent spending that constituted 87.8 percent of total expenditures. There was a $39 million gain in this area to $623 million.

In another crucial area, capital expenditures were said to be moderately lower by $1.2 million to reach $64.0 million.

“Net lending to public entities for budgetary support was reduced by 19.1 percent to $22.4 million,” the report said.

Bank analysts also reported that the government’s contingent liabilities slowed by 13.9 percent or $69.4 million to $431.5 million at the end of 2007.

It partially reflected the refinancing and reclassification of debt by the Airport Authority (39.8 million as direct obligations of the Nassau Airport Development [NAD] Company.) NAD has the primary responsibility of operating Lynden Pindling International Airport which is to undergo a massive transformation spearheaded by the Vancouver based group YRVAS.

There was also a reflection of the reduction in outstanding liabilities by the Bahamas Electricity Corporation ($14.6 million).

“At the end of 2007, the National Debt, which incorporates these contingent liabilities stood at $177.6 million (6.2 percent) higher at $3,062 million – extending the comparative $147.7 million increase posted in 2006,” the report noted.

Source: Bahama Journal

The Vancouver based company that has been tasked with transforming Lynden Pindling International Airport [LPIA] into a premier gateway has disposed of a substantial interest in the company.

YVR Airport Services has now entered a partnership with Citi Infrastructure Investors (CII) to jointly pursue the sourcing, funding and maximization of potential airport opportunities, according to the airport management company.

Last week, the Bahama Journal reported that YVRAS officials disclosed in a note that was posted in the Vancouver International Airport Authorit-y’s financial statements that it was in the process of disposing of a substantial interest in the company. However, there was no indication about who was interested in buying into the company.

The airport authority stated that if the transaction went through, the capital for YVRAS would be “substantially changed.”

Under the terms of the agreement, CII will also acquire 50 per cent of the shares of YVRAS and YVRAS will become CII’s exclusive platform for investing in airport assets, it was reported this week. The airport management company is relying on CII’s extensive global connections, long-term capital and an in-depth understanding of airport investment.

Officials also reported that CII is attracted to a partnership with Vancouver Airport Authority – the parent company for YVRAS – because of its innovation and operational excellence developed at its internationally recognized, award winning, North American gateway home airport of Vancouver International Airport (YVR).

In addition, YVRAS had amassed the reputation of being one of the pre-eminent managers of international airports with a successful track record in bidding on international airport assets.

“This is a new chapter in a great made-in-B.C. success story. In only 12 years, YVRAS has grown from three people and a bold idea into a major airport development company, operating 18 airports in seven countries,” said Graham Clarke, chair of Vancouver Airport Authority Board of Directors.

YVRAS, created in 1994, manages airports in seven countries, including The Bahamas, Canada, the Dominican Republic, Chile, Jamaica, Turks and Caicos and Cyprus. A few years ago, the company won the contract to redevelop LPIA which is the fourth busiest airport in the Caribbean region and handles approximately 3.2 million passengers annually. The airports in that portfolio recorded consolidated revenues of $433 million and combined passenger traffic of 29 million last year, it was reported.

“If British Columbia is to grow, then YVR must compete and win in the gateway battle for airlines and passengers - and to be the best at home, you need to be achieving out in the world,” said Larry Berg, president and chief executive officer of Vancouver Airport Authority.

“We are proud of how our subsidiary company has taken the excellence of B.C. and YVR into the international market. We see the partnership with CII as critical in taking YVRAS to the next stage of growth. We believe we have found a strong, complementary long-term partner that understands airport infrastructure and brings a lot to the table.”

Felicity Gates, co-head and partner of CII, said the company is seeking to establish a small number of best-in-class infrastructure platforms for growth and long-term investment through its alliance with the Vancouver company.

George Casey, president and chief executive officer of YVRAS called the move a welcome partnership that validates YVRAS position in the marketplace.

“CII is sponsored by one of the largest financial institutions in the world and their understanding of infrastructure and world capital markets will further support YVRAS as it matures to the next level,” he said.

The Nassau Airport Development Company Limited (NAD), in which YVRAS is heavily involved and through which it is driving the transformation of LPIA, was established to manage, operate, maintain and develop the airport under a 30-year agreement with the company.

NAD assumed responsibility for the airport on April 1, 2007.

NAD is responsible for introducing best practices, managing the development and construction of a new passenger terminal and related infrastructure estimated to be approximately US$400 million, enhancing commercial venues and improving the US Pre-Clearance facilities and services.

Source: Bahama Journal

Pioneer Shipping Ltd. is expected to close its doors Friday, putting dozens of people out of work and ending almost three decades of operations here.

In a flyer handed out to customers, the import shipping company said it is “joining forces” with Laser International Freight Transport in order to provide better shipping logistics.

Workers said they were notified last Wednesday of the company’s decision to close its doors, effectively ending its 29-year stint here.

Two days later, dockworkers were reportedly let go.

According to Philip Kelly, a father of five, he and his Pioneer’s Master Terminal co-workers were sent packing last Friday with no compensation package and with only one week’s pay in their pockets.

“We were abused and we were treated wrongly,” he told the Journal Tuesday.

His coworker, Perry Winder, a father of a six-month-old daughter, agreed.

“This left me speechless because I have a family to take care of,” said Mr. Winder, who had been with the company for about a year.

“These people don’t care about us. We need somebody to please take a stand and try help us out.”

Alibrando Dean, who has a wife and a two-month-old son to support, said it’s a situation that has left workers’ finances strained.

“This has left us in a sticky situation because now we have bills to pay and it’s the end of the month. Most of us have mortgages. We have a family and it left us in a strain because last week’s pay was to take care of last week’s set of bills. This week’s pay is to take care of this week’s set of bills,” he said.

He told the Journal that with his one week’s pay he received a letter that was vague about the date of future compensation for workers’ abrupt termination.

“They are saying they are supposed to give us two weeks’ pay in lieu of notice, two weeks’ vacation and two weeks for the years we have been there and now they are telling us we don’t have anything to get because the company is not sold yet and when the company gets sold they’ll give us something,” Mr. Dean claimed.

“I don’t think it’s fair because we don’t have a job and we still have mouths to feed.”

The men said they have alerted the Labour Board to their plight.

Their greatest fear is once the company closes its doors Friday, there will be no way to contact their bosses about their promised compensation.

Meantime, one Pioneer office worker who still has a job – at least until Friday – said those who remain at work are “nervous wrecks” uncertain of their fate.

“Staff workers are now sitting here in limbo. They have had nothing in writing to say what they are going to get. About 35 people are going to be unemployed when the company closes,” the office worker said.

“We’ve been told verbally that there’s no money. In a meeting last week, the company said it has to sell the property first before they give out compensation packages. We’re in here nervous wrecks, uncertain of our destiny.”

The Nassau-based company isn’t the only branch closing its doors, according to an office worker, who said the Miami office closed last Friday, leaving 40 people there without a job.

Pioneer said this move is all in an effort to provide multiple shipping services in a “seamless manner” to its valued customers.

Laser International Freight and Transport is now expected to handle the consolidation of Pioneer’s container loading and logistics.

Shipped cargo will arrive in Nassau at Arawak Cay instead of Union Wharf.

Meantime customers are being told to collect all cargo at the Pioneer Union Wharf Dock facility by Friday.

The Journal was unable to reach Pioneer President Arthur Thompson for comment.

Source: Bahama Journal

The sport of beach volleyball continues to grow in The Bahamas with the help of businessman Peter Nygard and the Defenders Volleyball Club who recently completed their annual beach tournament.

Nygard said this is the only sport in The Bahamas where the facilities of beach, sun and sand are already provided.

Nygard, a former Olympian in sailing pledged his support for the continuation of beach volleyball in The Bahamas and to the athletes who play the sport.

Nygard said they have been trying to get a Bahamian team into the 2008 Olympics for beach volleyball but were unable to do it.

He said they are not going to stop because he believes the talent is there and they will continue and try out for the 2012 London Olympics.

“My major ambition for sports in The Bahamas is to see a beach volleyball team at the Olympic games because we have the best beaches in the world to achieve that goal and whenever you travel to Brazil, you will see on all of the beaches volleyball nets,” said Nygard.

During a press conference held at Nygard Cay, members of the NPVA beach volleyball tournament consisting of Glen Rolle, Lahaundro Thompson, Muller Petit Tony and Rony Simon made a special presentation to Nygard.

Tony Simon acted as the spokesman for the group said their relationship with Nygard has grown to the where they consider him a brother.

Simon said a few weeks ago, they took part in two volleyball tournaments here in The Bahamas with one indoor and the other outdoor.

Simon along with the group presented their first place trophy to Nygard thanking him for his full support to their development and the development of the sport.

Source: Bahama Journal

Mariah Carey really did get married to Nick Cannon in the Bahamas last week — and they have the tattoos to prove it.

Mariah Carey says only a few people knew of her secret wedding to actor Nick Cannon.

The 38-year-old singer and the 27-year-old actor confirmed to People magazine that they tied the knot at Carey’s Bahamian estate April 30 after a courtship that began in late March.

In an interview from the magazine’s May 19 issue, Cannon said they clicked instantly when Carey cast him as a lover in the video for her new single, “Bye Bye.”

“From the first time we sat down to discuss the video at the Beverly Hills Hotel, we connected,” Cannon said. “We had so much in common spiritually, and we laugh at the same things. I didn’t have to put on my Mac Daddy suave mode. I was able to be myself with her. We are both eternally 12 years old.”

They began a whirlwind romance, and raised eyebrows when Carey was seen sporting a huge diamond ring on her finger at the Tribeca Film Festival premiere of her movie “Tennessee,” in which she plays a waitress. Carey said she told “only about four people” about the wedding.

Were Carey’s friends surprised?

“Some were, but some weren’t,” she said. “One thing (few people) knew was we got tattoos a few weeks earlier. So anyone who saw my (Mrs. Cannon) tattoo wasn’t surprised.”

Chiming in, Cannon said, “To me rings are special and exciting, but tattoos mean more than anything. They’re forever and ever. They professed our love.”

A dozen guests attended their sunset wedding, where they served Maine lobster and Dom Perignon champagne. The bride wore a gown by Nile Cmylo that showed off her curves and faded from off-white to pale pink.

“My pastor Clarence Keaton flew in from New York,” Carey said. “The whole wedding was really beautiful and sweet. Being there with loved ones under the sky … it was a spiritual moment.”

Cannon said he was speechless watching Carey walk down the aisle: “I was elated, but I was thinking, `Don’t pass out.’ … (The pastor) said, `The eyes are the window to the soul,’ then gave us an entire minute to stare into each other’s eyes. So I was saying, `Don’t cry.”‘

The pair said they’ve thought about having kids.

“It’s part of the whole purpose of getting married,” Carey said. “I’d just want our children to have the best childhood and upbringing they possibly could.”

Source: CNN