The cost element of a National Health Insurance (NHI) proposal is a major concern ...says The Bahamas Chamber of Commerce and Employers Confederation (BCCEC)

 Chamber: Nhi Costs 'A Major Concern'

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Nassau, The Bahamas

THE Bahamas Chamber of Commerce and Employers Confederation (BCCEC) is finalising the formation of a committee to review the Government’s National Health Insurance (NHI) proposals, its chief executive agreeing that implementation costs were a major concern.

Edison Sumner, who is also a member of the Government’s NHI steering committee, told Tribune Business: “We are in the process of finalising the formation of a committee who will be reviewing the NHI proposals, and once that committee is formed we will start to put positions together based on the information that we have.

“There was a private sector committee established several years ago, who looked at the work of the Blue Ribbon Commission, and we are going to be studying the work already done and looking at revisions made to the current plan.”

“Once our committee would have had a chance to review those details, then we would be able to begin putting a position forward. As it stands at the moment, I have been representing the private sector on the NHI steering committee,” Mr Sumner said.

“It’s been more of an exploratory process to see what’s available, what’s out there and getting reports in from the consultant, Sanigest. We haven’t formed an opinion as yet. We are reviewing the information we have, and the committee, once they complete their work, then we will begin to formulate a comprehensive private sector response to the NHI proposals.”

National Health Insurance was first developed as a policy priority under the first Christie administration. A 15-member Blue Ribbon Commission was appointed to review the feasibility of a National Health Insurance Plan. The National Health Insurance Act 2006 was then tabled in Parliament by the Christie government on November 2006.

The Government is now moving towards the “full implementation” of a National Health Insurance scheme, having appointed a 12-member steering committee to oversee the full implementation of the National Insurance Act 2006. The main fears, now as then, were the likely cost burden an NHI scheme would impose on the Bahamian economy and business community, and who will pay for it.

“The cost element is a major concern, and even that hasn’t been determined yet. We have some ideas and indications but we don’t know; we don’t know for sure yet how it’s going to be funded. These are questions being asked and issues being addressed. I suppose we won’t have a final determination until the work of the consultants and the cost analysis is complete. We expect to be very engaged in the process,” said Mr Sumner.

March 31, 2014

Tribune 242

Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC), and the Value Added Tax (VAT) debate in The Bahamas

Tax Coalition Not Out To 'Kill Vat'

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Nassau, The Bahamas


The Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) proposed tax reform committee is aiming to bring “more leadership to the debate”, its chairman emphasising: “This isn’t a Coalition to kill VAT.”

 

Chester Cooper told Tribune Business that the BCCEC was keeping a “very open mind” on the direction the Bahamas should take, telling Tribune Business that tax reform in this nation was inevitable.

 

Providing more details on the BCCEC’s ‘Tax Coalition’ plans, first revealed by this newspaper last week, Mr Cooper said its purpose was effectively to ‘bridge the gap’ between the Government and private sector when it came to educating and informing the latter on VAT and other tax reforms.

 

He added that the Tax Reform Committee would also “examine the fundamentals” of the Government’s VAT proposal to see whether it was the best tax reform option for the Bahamas, of if a revised version - or entirely different tax - was the best option.

 

And Mr Cooper also acknowledged that the Committee was intended to “calm the hysteria” that had arisen over VAT and the Government’s wider tax reform plans, given that most commentators and statements on the issue were vehemently opposed to the proposals.

 

“In a nutshell, over the past several weeks, we have become a little concerned about the level of debate on the issue of VAT, and the level of criticism,” Mr Cooper told Tribune Business.

 

“We want to see this [the Committee] bring more leadership to the debate, organise and elevate it.”

 

Acknowledging that the Government had begun to ‘ramp up’ its VAT educational initiatives, via speeches and presentations, Mr Cooper said the proposed tax reform committee will be co-chaired by Robert Myers, the BCCEC’s vice-chairman, and PricewaterhouseCoopers (PwC) Bahamas accountant and partner, Gowon Bowe.

 

Its objective, he added, was to “bring together a broad private sector coalition” featuring all key industry associations in an effort to engage both the Government and private sector, analysing VAT’s likely impact on both the overall economy and individual sectors.

 

Mr Cooper promised that the Committee would “really look at the facts and fundamentals of what is being proposed, look at it scientifically, and look at the impact on some of the sectors”.

 

It will also arrange a series of meetings with sister Family Island Chambers, industry associations and their members, in collaboration with the Ministry of Finance, to educate them and explain how VAT will impact their businesses.

 

“By and large there’s been a bit of a feeding frenzy coming out and opposing VAT,” Mr Cooper told Tribune Business.

 

“We [the BCCEC] believe in national tax reform. When the rating agencies downgraded us were dismayed by that. We want to have fiscal prudence, but want the Government to have enough revenues and exercise restraint in spending.

 

“We expect, at the end of the day, to have a balanced, equitable tax structure, whether its VAT in its current form or revised form, or a new form of tax altogether.”

 

The BCCEC chairman added: “I think it’s important we find a way to calm the hysteria a little bit, and have a productive, mature discussion that provides leadership from the private sector in that regard.

 

“This is not a Coalition to kill VAT. I don’t want the public to get any form of impression, or the Government to get its back up, that this is a Coalition to kill it.

 

“If it happens, at the end of the day, that all the Associations and people we talk to are opposed to VAT in a very drastic way, because it’s detrimental and their analysis shows the impact is negative, we might take that position. At this point, the Chamber is very open-minded.”

 

The VAT debate has intensified since the Nassau Institute economic think-tank published the results of its study, which showed that the implementation of such a tax would cut Bahamian GDP by between $322-$483 million annually.

 

That sparked senior Ministry of Finance officials and consultants into lining up to slam the report’s findings. One, former PwC senior partner, Ishmael Lightbourne, last week blasted the Nassau Institute’s study as “one of the most extreme, ridiculous and exaggerated” reports he had ever seen.

 

Mr Cooper, though, pointed out that the Wall Street credit rating agencies, plus both the International Monetary Fund (IMF) and Inter-American Development Bank (IDB), had all emphasised the need for “significant tax reform in the Bahamas”.

 

“We want our economy to be fiscally sound, by generating enough revenues to service debt and build hospitals road and schools,” the BCCEC chairman added.

 

“What is important is for us to have a balanced, equitable tax structure that improves government revenues but, at the same time, not slow down the economy or disincentivise entrepreneurs from going into business or staying in business.

 

“We are also strong advocates for more efficiency and less waste in government so that we can have prudent spending of the revenues that we are now getting.

 

“There is also a need to stamp out corruption to minimise leakages, and the Government needs to demonstrate that it has the will and the teeth to implement appropriate controls so that we maximise the benefit to the country of the taxes that are now in place and the new taxes that might come.”

 

Emphasising that he did not believe in ‘Soap Box Advocacy’, Mr Cooper said: “Obviously, when I hear a few members opine that VAT will kill their business, I become concerned.

 

“Likewise any suggestion that VAT will slow down the economy, cause businesses to put investment on hold is a cause of concern for me a chairman of the BCCEC.”

 

And he told Tribune Business: “By and large, the public does not understand what is being proposed, and large elements of the business community have not zeroed in on VAT and its impact.

 

“We’re calling on the private sector to be more informed and engaged, and will do our part to make that happen.”

 

September 30, 2013

 

Tribune 242

 

Bahamas Blog International

 

Bahamas: Members of the financial industry are concerned about the lack of information on the Economic Partnership Agreement (EPA) - between the European Union (EU) and the African, Caribbean and Pacific Group of States...

Concerns raised about lack of awareness on EPA
By JAMMAL SMITH
Guardian Business Reporter
jammal@nasguard.com


Awareness needs to be raised about the Economic Partnership Agreement (EPA) negotiated between the European Union (EU) and the African, Caribbean and Pacific Group of States, and its impact on the local private sector, with several members of the financial industry raising concerns about a lack of information on the agreement.

Investment specialist for the CARICOM Implementation Unit Allyson Francis told Guardian Business yesterday that the private sector needs to increase its knowledge about the EPA given the important role of that sector.

“In terms of challenges my major concern is awareness from the private sector about what the EPA involves,” Francis said. “It’s a challenge for the region in terms of changing our mindset and being more proactive, and understanding the global environment we’re living in now and to position ourselves, we can’t necessarily sit back and wait on government to do things for us.

“I hope that at the end of the day a better understanding of the agreement will help the Bahamas business sector to be able to do that.”

Discussions on the EPA were conducted yesterday at a technical workshop hosted by the Caribbean Export Development Agency, the CARICOM EPA Implementation Unit and The Bahamas Chamber of Commerce at the Sheraton Resort. Various speakers presented an overview of the EPA, and discussed opportunities and challenges facing The Bahamas and the region as a result of the agreement.

The EPA creates a free trade area between the European Union (EU) and the African, Caribbean and Pacific Group of States (ACP). It’s a response to criticism that the non-reciprocal and discriminating preferential trade agreements offered by the EU don’t comply with rules of the World Trade Organization (WTO).

The Bahamas signed the EPA agreement as a part of the CARIFORUM sub-group within the ACP on October 15, 2008, however Article 63 of that agreement allowed The Bahamas and Haiti to have their commitments on services and investment incorporated into the EPA following a decision of the CARIFORUM-EC Trade and Development Committee. Negotiations related to services were completed on January 25, 2010.

Francis added that upcoming meetings with the government will give her a better feel for what the country’s plans are in terms of the EPA.

Members of the local business community were also present during the seminar, including CEO of the Bahamas Financial Services Board (BFSB) Wendy Warren. She expressed her concerns about the amount of information available to the country and the need for communication to be improved.

“To even take advantage of the EPA you have to first of all understand what the offers actually provide for and what the conditions are, and if it’s possible to meet those conditions,” Warren said. “I would [like] to see us analyze those offers, particularly financial services in far greater detail to understand what market access have we actually achieved in Europe.”

She added that a proactive approach has to be taken in terms of those relationships between the European countries and The Bahamas, which will enable the EPA to be more effective.

Francis believes that the EPA can be enormously benefical to the country and the rest of the region.

“The EPA will have some great potential for [the Caribbean] if we could clearly understand where we are and where we want to go, and utilize the agreement the best we can,” she said.

12/10/2010

thenassauguardian

Bahamas Blog International

Khaalis Rolle - Bahamas Chamber of Commerce president says: It’s extremely frightening to do business in The Bahamas now

Bahamas ‘far beyond Wild Wild West’
By NEIL HARTNELL
Tribune Business Editor:


The Bahamas will be “in major trouble within five years” if it fails to take immediate action to control its ever-expanding crime problem, the Bahamas Chamber of Commerce’s president warning that last week’s Supreme Court break-in and armed robbery at FirstCaribbean’s Sandyport branch showed this nation was “far beyond being the Wild Wild West”.

Telling Tribune Business that the level of crime in the Bahamas, especially violent offences and armed robberies, was now the highest in his lifetime, Khaalis Rolle said many Bahamian businesses were now afraid to conduct commerce at night, as criminals seemed to have no fear of the law.

Arguing that guns were seemingly as commonplace as cars in the Bahamas, Mr Rolle said the FirstCaribbean armed robbery and high speed chase/shoot-out between the crooks and the police showed just what a lawless, dangerous society this nation had become.

“It’s extremely frightening to do business in this country now,” Mr Rolle said. “When you get to the point where the criminals have equal or better ammunition than the police, and have absolutely no fear of the law, what’s the alternative? What do we do?”

Recalling a reggae song that described Jamaica as a ‘Cowboy town’, the Chamber president added: “The Bahamas is far beyond a Cowboy town, the Wild Wild West. Every single day there is a report of some armed robbery or attempted armed robbery. The criminals just don’t have any fear of the law.

“I think about 10 years ago I spoke at a Toastmasters meeting, and I had a conversation with a politician. I said the Bahamas was becoming an increasingly dangerous society and something had to be done. His response was as if there was no concern, and we’re at the point now where businesspeople are extremely afraid to do business after dark.”

Pointing to the Supreme Court break-in at Justice Jon Isaacs’ office, Mr Rolle said this showed that “no place is off limits”.

“The criminals are so daring that they do what they want to do during the day, and the one entity where you’d have thought they would be off limits is no longer. The fellow broke into the courts. This is extremely serious,” the Chamber president added, pointing out that the implications went beyond just the immediate negative impact on business and the Bahamian economy.

Warning that it would “not be long” before travel advisories and media reports declared the Bahamas an unsafe destination, Mr Rolle added: “Everyone seemingly has a gun. Guns seem to be as ubiquitous as vehicles. Guns are everywhere; cars are everywhere. Gun crime is fare more pervasive than it has ever been in my life.

“The mindset has degenerated to the point where people do not believe there is a penalty attached to their actions, and if there is some penalty attached, people don’t care.”

Acknowledging that it was “easy to point the finger” of blame at the Government or Royal Bahamas Police Force for this nation’s crime problems, Mr Rolle told Tribune Business: “There’s a huge implication for society as a whole.

“I believe this problem goes far deeper, and if we do not resolve it now, or at least start taking preparatory steps to, we’re going to be in significant trouble in five years. In five years’ time, the Bahamas will not be the same Bahamas we see now.

“We’ve got some issues that are going to impact this country, and even though I speak on behalf of the business community, the implications far beyond. It goes back to deficiencies in the education system, deficiencies in the social system, and we have to address these deficiencies and do it proactively.”

August 03, 2010

tribune242

Bahamas Blog International