The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Prime Minister last night announced plans to finance a $25 million small business development initiative from selling-off the Government ownership in Aliv and BTC.

Pledging his administration's commitment to developing Bahamian-owned micro, small and medium-sized enterprises (MSMEs), Dr Minnis said: "I announce this evening that we have agreed to invest $25 million to help develop MSMEs.

"This will amount to $5 million a year for the next five years. It will be funded from the sale of shares from Aliv and BTC."

The sale of the Government's 100 per cent ownership of HoldingCo, the vehicle that holds the majority 51.75 per cent equity interest in Aliv, the second mobile operator, has been on the launch pad for almost one year.

The proposed sell-off, via a private placement of shares with institutional investors such as pension funds, mutual funds and credit unions, could raise up to $70 million if fully subscribed once the Government 'pulls the trigger'.

The Minnis administration's plans for the Government's minority Bahamas Telecommunications Company (BTC) stake, once the 2 per cent held in the BTC Foundation is subtracted, are less clear. However, it is likely to return to the last FNM government's plan to sell down its BTC equity stake in tranches.

Apart from the $25 million small business development plan, and resort/investment projects in Grand Bahama, there was relatively little that was new in economic terms when it came to the Prime Minister's national address last night.

Dr Minnis, though, did unveil proposals to stimulate the housing market, construction sector and Bahamian home ownership through the Government providing low-cost lots to first-time home buyers on New Providence.

The Prime Minister said lot owners would have two years to build their homes if they wished to take advantage of tax exemptions, with home design and construction placed in their hands and those of the private sector.

Expressing hope that "scores" of Bahamians will take advantage of this, Dr Minnis said it would also eliminate corruption and shoddy workmanship in the public sector.

"The lots will be supplied with necessary utilities. The homeowners will be responsible for building their own homes," he added. "They may utilise their own architect or utilise pre-existing plans offered by the Government.

"The programme will be extended to Family Islands, thus encouraging Family Island ownership, second home ownership, and entrepreneurship development of bed and breakfast properties.

"This new programme will decrease opportunities for corruption by public officials. It will also mean less public funds directed to ongoing repairs at homes that were improperly built."