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This Week in the Bahamas Commentary by Elcott Coleby: Dec 7 - 11
By Elcott Coleby
Dec 11, 2015 - 2:56:38 PM

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In Parliament...

Prime Minister the Rt. Hon. Perry G. Christie delivered his fourth update to the House on hurricane restoration efforts in the south east Bahamas. He said in each of his three previous updates - October 7th, October 21st and November 4th - he provided incremental updates on where the country was in terms of the recovery.

The Prime Minister proposed the options to advance “soft or non-interest bearing loans so that individuals might replace their vessels and other fishing apparatus” in response to the decimation of the fishing sector.

Turning his attention to housing, Mr. Christie provided a listing by island of the 31 homes to be replaced based on government assessments to date:

Acklins

2 x 1 bed
2 x 3 bed
Total: 4

Crooked Island/ Long Cay
5 x 1 bed
2 x 2 bed
5 x 3 bed
Total: 12

Long Island
4 x 1 bed
2 x 2 bed
5 x 3 bed
Total: 11
 
San Salvador
1 x 1 bed
2 x 2 bed
1 x 3 bed
Total: 4

Total Replacements: 31 homes

Regarding the cost of repairs to damaged homes, Mr. Christie revealed that to date 90 homes have been repaired and 11 are still under repair. Expenditure on material he said amounted to $574,037 and labor amounted to $51,326.23.

Finally, the Prime Minister provided an update on the number and dollar value of the applications filed under the current exigency order:

Processed Applications:

Building Materials, Electrical, Plumbing, etc. - 27 applications totaling.………$771,459.25

Vehicles - 7 applications totaling.……………………………………………………………..$58,605.00

Business, Faith Based Groups, etc. - 5 applications totaling.…………………...….$33,348.35

Grand Total of 39 applications processed to date totaling………….……………..$863,412.60

Tourism Minister the Hon. Obie Wilchcombe updated the House on meetings held in London with major investors in Freeport about major projects in various stages of development on the island of Grand Bahama. The discussions he said were also pursuant to the current status of specific tax exemptions (related to real property, capital gains and income concessions) contained in the Hawksbill Creek Agreement (HCA) that are currently under review.

The Member for West End and Bimini explained to the House that the executives of Hutchison Port Holdings and CK Property Holdings “shared some of the same concerns raised by the Government. They had invested one billion dollars in Freeport and had not realized a satisfactory return on their investment. Their hotels particularly were sustaining heavy losses nevertheless they kept meeting the shortfall and kept the hotels opened without laying off staff.”

Further, explained the Minister, the Hutchison principals felt that commitment to further investment in Grand Bahama including the Phase V expansion of the Container Port, the development of a logistics centre and the development of their extensive real estate holdings, “would require certainty on the extension of the expiring real property tax, capital gains and income concessions.”

Wilchcombe said the discussions focused on the following 8 current investment projects in Grand Bahama:

  1. Early start of expansion of container port and related facilities.
  2. Pursuing with partners the development of the Air/Sea Business Logistics centre.
  3. Upgrade of the International Airport and securing an operator.
  4. Waiver of Exclusivity regarding cruise ports and offshore cruise moorings.
  5. Cruise port project for East Grand Bahama.
  6. Re-invigorate the hotel, casino, golf courses, and real estate holdings.
  7. Timely completion of the Review of the expiring concessions under the HCA.
  8. Revitalization of the GBPA licensing and regulatory functions.
Immigration Minister the Hon. Fred Mitchell delivered three communications: one on the trip to Malta for CHOGM; one on immigration matters published in the press and an update on the work of the House Select Committee on the Honours Bill.

On CHOGM, the Minister considered the election of Dominican born Baroness Patricia Scotland as the new Commonwealth Secretary General as an important triumph coming out of CHOGM.

“I consider however an important triumph the success of the election of Baroness Patricia Scotland as the new Secretary General of the Commonwealth.”

He congratulated her saying that The Bahamas made the right decision in supporting her candidacy and expressed the view that she has the ability “to increase the complement of Bahamian and Caribbean persons at the Commonwealth in London and to ensure that the ABC’s (meaning Australia, Great Britain and Canada) reengage.”

On immigration matters, Mitchell insisted that an error on the detention order resulted in the court ordered release of Mr. Sewell but denied illegal detention on the part of the government. He also expressed the government’s intent to appeal the ruling of the courts to release certain immigration files. He felt the appeal was necessary to determine if communications at the cabinet level outside of cabinet conclusions should be placed in the public domain.

Minister of Transport and Aviation the Hon. Glenys Hanna-Martin reported on the re-election of The Bahamas to the executive council in category ‘c’ of the International Maritime Organization (IMO) by the largest margin ever.

According to Hanna-Martin, Category ‘C’ has 20 members from states which have special interests in maritime transport or navigation and whose election to the Council will ensure the representation of all major geographic areas in the world.

It is in this Category that The Bahamas was re-elected along with Singapore, Turkey, Malta, Australia, Cyprus, Peru, Egypt, Kenya, Indonesia, South Africa, Morocco, Chile, Denmark, Belgium, Mexico, Malaysia, Philippines, Liberia, and Thailand. The Bahamas is now the only country serving in this region said the Minister.

An organ of the United Nations since 1948 and with more than 90% of international trade conducted by sea, Hanna-Martin pointed out that the IMO is “a specialized agency of the United Nations responsible for setting global standards in maritime safety, security and environmental performance of international shipping.”

The Minister of Youth Sports and Culture reported on the list of year end cultural and sports activities and high on the calendar was junior junkanoo and the Popeye Bowl, both to be held at the Thomas A. Robinson National Stadium. Junior Junkanoo will take place on Saturday at 2pm, 12th December where 21 schools will compete. This year will see the largest family island participation, making Junior Junkanoo truly national said Minister Johnson. The Popeye Bowl is scheduled for Christmas Eve.

In the agenda item ‘member privilege,’ opposition member for Central Grand Bahama, the Hon. Neko Grant, called for an investigation into allegations made by Stellar Waste to Energy CEO Dr. Fabrizio Zanaboni that some House members asked him for “small donations” which Mr. Grant characterized as “bribes.” Prime Minister Christie said the government side had no objections and fully supported the motion. 

Meanwhile the compendium of Electricity Bills were debated and passed in the Senate on Wednesday. Government senator the Hon. Keith Bell in supporting the bill reiterated that the Government has reviewed the options available to it to find the best solution which would deliver the following results:

  1. Result in a long term reduction in electricity rates;
  2. Maintain 100% Bahamian Ownership of BEC;
  3. Reduce and eliminate the Government’s liability for the debts of BEC;
  4. Raise hundreds of millions required to upgrade our national electrical infrastructure WITHOUT- increasing the national debt through direct borrowings or guarantees for BEC; and
  5. Improve the vitality and prospects of the Bahamian Economy by providing cheaper cleaner and more reliable electricity.

Attorney General Senator Allyson Maynard-Gibson told colleagues that under the new regime, the government through PowerSecure aims to reduce the cost of electricity by 41% - from the current 44 cents/KwH to 26 cents/KwH. She said that the management fee of $2 million per annum is a small price to pay for such huge cost savings to so many people, but beyond that, additional revenues accrued to PowerSecure will be predicated on their ability to meet agreed targets of profitability and rates reduction by BEC. 

Bahamas undergoes 4th round of CFATF audits


Prime Minister Christie has advanced the argument from his feet in the House that “probity” was the watch word as the country’s financial system undergoes thorough audits for fitness and transparency. He also argued that the $700 million web shop gaming industry had to be a part of the financial audit and The Bahamas could not pass such an audit with a $700 million unregulated industry. The government, he said, had a responsibility to protect the international reputation and integrity of the country’s second economic pillar, financial services, and legalizing the web shop gaming industry was in the best interest of The Bahamas. “Probity” said Mr. Christie, was the watch word.

As the country undergoes its fourth round of evaluations of its financial system by the Caribbean Financial Action Task Force (CFATF), Alicia Gibson of AG Consulting who worked with the Bahamas government to implement the new gaming regulations said that the gaming industry’s regulatory regime is “second to none” and “unrecognizable” one year later.

“It’s unrecognizable” today said Ms. Gibson. Just one year ago there were many gaming related premises, “you didn’t know who owned these premises; you weren’t able to track the transactions, no tax was paid. Now in its place you have a completely transparently licensed and regulated industry. You have people that have been brought into the formal business fold in probably what is the most strictly regulated industry in the world.”    

Speaking of the journey to get to this point, she said that the government and its advisors wanted to create “a cutting edge product – a cutting edge jurisdiction...streamlined (and) effective regulation” to position The Bahamas “as a world leader in regulations.” The team successfully put in place “legislation and ensuring that proper mechanisms were in place for the identification of criminals, suspicious activities, making entirely and completely sure - and we went to extensive lengths to do this – that the legislation would stand up to any kind of muster from that perspective.”   

Criminal and civil forfeiture provisions in the gaming act are just some of the battery of provisions designed to “buttress and supplement what we have in our financial transaction legislation.” She said great care was taken to ensure that everything done “would be responsive to all these (international) requirements that would position The Bahamas as not only a leading jurisdiction in the region but a global leader in this field.

PM at Hero World Challenge Golf tourney


Tiger Woods played host to the Hero World Challenge golf tournament this past weekend at Albany in western New Providence. PGA golf sensation Bubba Watson “destroyed” the course said Tiger by shooting twenty-five under par to secure the victory. As he took in the game and presented the winning trophy, Prime Minister Christie reflected on his first term as Prime Minister and his vision to promote sports tourism as a major component of the country’s product offerings. This tournament on the course designed by Tiger Woods was a manifestation of this vision. Mr. Christie was accompanied by Tourism Minister Obie Wilchcombe.

High school student stabbed to death

Much of the attack was caught on video and immediately posted on social media. It was horrific. “An unspeakable tragedy” said Fox Hill MP Fred Mitchell.

In the aftermath a 17 year old 12th grade student of Doris Johnson High School died from injuries sustained in the attack allegedly by other students leaving families, friends, a school and a community in shock and in mourning.

The Ministry of Education, Science and Technology and the Member for Fox Hill joined in the grieving for the victim’s family, the Doris Johnson Senior High family and the community of Fox Hill as they extended condolences.

    
Prime Minister Christie: no rate charges “at this stage” of NHI

Speaking with reporters after the House adjournment on Wednesday, Prime Minister Christie revealed that PricewaterhouseCoopers (PwC) was engaged in a special costing exercise and figures on health cost will be available to the government “soon” to share with the public.

“The first thing we are going to roll out is primary health care and whatnot” said the Prime Minister.

“We are projecting what that will cost.

“If you noticed in my budget communication I indicated that I am not going to charge any rates at this stage because I want to ensure that people will be accommodated and know why they are being asked to pay and what they are being asked to pay for. All of that will come next year.”

The Prime Minister insisted that consistent with his position on VAT, he does not want to take on an adversarial role in the negotiations with stakeholders. He said he met with the Medical Association and was “very encouraged” by the meeting because they were all committed to NHI.

In response to calls for a delay, Mr. Christie said “no such thing will happen.”

In response to public relations, Mr. Christie said it has begun with Dr. Delon Braynen, Deputy Chief Medical Officer appearing on Issues of Today talk show where he revealed that the government will spend $100 million on NHI next year.

The Chief Medical Officer Dr. Glen Beneby was interviewed by Wendal Jones for the program Jones and Co. to be aired on Sunday afternoon.

Mr. Christie said he expects the communications and reports to the public to “ramp up” shortly where the government will explain to the people in detail what it is doing. The Prime Minister promised to launch a comprehensive communications campaign.

Attorney General: no “revolving door” on bail issue

Expressing the belief that members of the Royal Bahamas Police Force are doing their best in the fight against crime, Attorney General and Legal Affairs Minister the Hon. Allyson Maynard-Gibson stressed the importance of preserving the independence of the judiciary.

Her comments came on the heels of some criticism of the judiciary in its sentencing and interpretation of legislated sentencing guidelines. The Attorney General does not believe the judiciary is the cause of the high levels of crime in the country.

“I think its extremely important to be careful about protecting the independence of the judiciary” she said. “The facts show that there is not a revolving door on bail for persons who have been charged of murder. This year we can show that for those who have been granted bail, the majority of them - I think it’s nine – were granted bail this year. Two were granted and we appealed and those appeals were successful. And the other seven were all in respect to people who have been held beyond three years. In a country like ours, we believe that people should be charged within a reasonable time but we are unable for various reasons, and the commissioner knows many of them, not able to (get them) tried within that period so, of course, our system protects those who are presumed innocent until proven guilty. They have a right to bail.”   

Prime Minister Christie: “Significant movement” on Baha Mar


Reporting “significant movement” in the Baha Mar negotiations and his “expectation and fervent hope” of partial or full opening by March 2016, Prime Minister Christie expressed optimism over the future of Baha Mar.

He told reporters at the House of Assembly on Wednesday that a “significant statement” will be made shortly on the resort’s future.

He said he spoke extensively with the president of the China Export Import Bank while in London.

“We discussed the significant number of investors who had come forward from China.

“They include major construction companies, major engineering companies, communications subsidiaries, equity funds, some significant ones who have (visited) The Bahamas to look at the property.”

The Prime Minister said he expects Baha Mar to be partially or fully opened by March 2016 where it can play host to a major international conference scheduled for New Providence.

The project stalled on 29th June 2015 when Baha Mar filed for chapter 11 bankruptcy protection in Delaware; the case was later dismissed. Some 2,000 employees were laid off in October.   

Bahamas government congratulates Dr. Ralph Gonsalves


The Bahamas government issued a press statement on Thursday congratulating Dr. Gonsalves and his party on their electoral victory. The statement read as follows:

“The government and people of The Bahamas extend congratulations to Dr. Ralph Gonsalves and his Unity Labour Party (ULP) on the occasion of their electoral victory at the polls in Saint Vincent and the Grenadines yesterday (Wednesday, 9th December).

“We wish the new government of Saint Vincent well as Dr. Gonsalves embarks on his fourth consecutive term of governance.”


Royal Seas cruises to market Grand Bahama


Grand Bahama affairs Minister the Hon. Michael Darville announced on Thursday that Royal Seas Cruises, a new travel marketing company, has commenced marketing cruise & stay vacation packages to Grand Bahama and is expected to attract over300,000 annual visitors, 50,000 stopover visitors generating over 100,000 visitor nights with some 80% of guests hosted at their preferred resort partner the Grand Lucayan Resort.

The projected value to the Grand Bahamian economy is estimated to reach some $16,450,000.00 in direct expenditure.


In Passing…

At 180 feet in length and 39 feet in width, the fifth and largest vessel in the new fleet of the Royal Bahamas Defense Force as part of the government’s Sandy Bottom Project, the auxiliary landing craft HMBS Lawrence W. Major, arrived in Nassau on Friday evening, 4th December. The vessel is currently docked at the Prince George Dock undergoing final testing and inspection before the formal handover to the Bahamas government by Damen executives.

In a press release earlier this week, the Bahamas Public Parks and Public Beaches Authority advised the public that it was in the process of regularizing the display of signs on roadsides and verges especially on the island of New Providence. The Authority called for all unauthorized signs and billboards presently erected on roadsides and roundabouts to be removed by their owners on or before December 31st, 2015. The Authority gave notice that it will begin the removal of illegal signs in the New Year.

Popeye’s Louisiana Kitchen, that famous American Cajun themed fast food franchise, opened its doors for business in The Bahamas on Tuesday of this week to much fanfare and public interest, but the official opening took place on Thursday morning at its sole Prince Charles Drive $2 million location. Representing the government was Tourism Minister the Hon. Obie Wilchcombe who was instrumental in bringing the Popeye Bowl to Nassau. This NCAA Division One college Championship Bowl Series game was the first of its kind to be played outside of the continental USA since its inception during the 1930’s.

Two prominent Permanent Secretaries were feted with luncheons, gifts and showered with praises as they retired this week after stellar careers in the public service. They were Colin Higgs, PS in the Ministry of Works and Urban Development and Janeen McCartney, PS in the Ministry of Finance. Deputy Prime Minister Philip Davis paid tribute to Mr. Higgs and Prime Minister Christie paid tribute to Mrs. McCartney. In his tribute the PM said he and Mrs. McCartney’s careers in public service are paralleled which afforded him the opportunity to see Jan’s professional growth and development.

Human Rights Day is observed every year on 10 December. It commemorates the day on which, in 1948, the United Nations General Assembly adopted the Universal Declaration of Human Rights. In its message commemorating that day, the Bahamas government said that “as the world is gripped with growing acts of violence, terror and atrocious impingement on the rights of humanity, it is imperative to recall the intent of the Universal Declaration that stands as a common standard to uphold fundamental human rights and universal protection for all.”

Local pastor the Reverend Leonard Johnson was recently re-elected as president of the Atlantic Caribbean Union of the Seventh Day Adventists for a second consecutive five-year term. The service of consecration was held at the Centerville Seventh Day Adventist Church and presided over by Pastor Israel Leito, president of the Inter-American Division of Seventh Day Adventists.

Local Government officials from across The Bahamas gathered in Nassau at the Melia Resort to attend a two-day workshop and symposium to sharpen their skills in the areas of leadership, public policy and public administration. The Prime Minister opened the event and on hand were the Deputy Prime Minister Hon. Philip Brave Davis and Local Government Minister the Hon. Hope Strachan.
 
The People-to-People long service award ceremony will be held tonight(Friday) at Government House to honour many unsung heroes and frontline ambassadors in the direct marketing campaign of The Bahamas to millions of tourists who grace our shores each year.


About the author: Elcott Coleby is a Deputy Director at the Bahamas Information Services. He holds a Bachelor of Science degree in Chemistry (B.Sc) and a Masters of Business Administration (MBA). He provides frequent commentary on public policy and communicates the works of the government. Address all comments to the following email: egcoleby44@gmail.com


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