The Tribune

• Fishermen ‘eagerly await’ revisions to Budget hikes

• But concerned not implemented in time for August 1

• Impact on ‘average Bahamian’ is ‘very hard to swallow’

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian fishermen were yesterday “eagerly awaiting” promised revisions to the over “ten-fold” increases in annual boat registration fees amid fears the reforms will not take effect before lobster season’s August 1 start.

Paul Maillis, the National Fisheries Association’s (NFA) secretary, told Tribune Business that following meetings with Cabinet ministers and Port Department officials the industry had been informed that a new boat registration fee schedule for both first-time payments and annual renewals will be unveiled to ease the financial impact for commercial fishermen.

However, no timeline for when the changes are to be introduced has been confirmed, and he voiced concern that fishermen who have yet to register their vessels - because they only take them out on the water when lobster season begins - will be hit with the current higher fee hikes because the reforms will not be implemented by August 1.

Calling on the Government to provide a “credit” for future annual boat registration fees to fishermen caught in this predicament, Mr Maillis said the fall-out and subsequent push back to the hikes unveiled with the 2023-2024 Budget were entirely “avoidable” if the fishing industry had been consulted beforehand.

Describing the NFA and other fisheries industry groups as “blindsided” by both the increases and their magnitude, he also urged the Government to distinguish between Bahamian-owned and foreign-owned vessels in the registration fee structure. And it also needed to look at eliminating VAT on vessels brought in for commercial fisheries use as it has now done for private boats and pleasure craft.

Having previously described the ten-fold increase in the annual cost for registering boats as “distressing”, Mr Maillis said the NFA swiftly took its concerns to Clay Sweeting, minister of agriculture, marine resources and Family Island affairs, and the relevant authorities.

“We spoke with minister Sweeting and spoke with members of the Port Department, and they agreed they were going to meet to discuss amending the fee schedule for commercial fishermen,” he told Tribune Business. “We submitted our opinion on the matter, and the relevant authorities are currently working out the new fees schedule.

“We’re told that the new fee schedule will be coming out shortly, and we applaud them for reacting swiftly to our concerns. I was just told it will be coming out soon but was not given a specific date. Hopefully it will go through as promised.” Reforms to marine-related legislation mean a 50-foot commercial fishing boat that would have previously cost $250 to register for a year is now $2,300 plus a $125 inspection fee. And the first-time registration fee was also raised to $10,000.

First-time registrants of vessels between 40 to 49 feet in length, and 50 to 59 feet, saw fees increase from the previous $1,000 to $7,000 and $10,000, respectively. And a 200-foot yacht presently has to pay a $35,000 first-time registration compared to the current $4,000, which represents an eight-fold hike, although the Government’s position is that this has been more than offset by the removal of a 20 percent tax rate via Customs duty and VAT elimination.

The Government, though, had already signalled its willingness to make adjustments given the fishing industry’s concerns. Tavares LaRoda, the New Providence Port Authority’s chairman, previously told this newspaper: “It was something that was raised, and is definitely something that can be looked at.

“Once they review the fees, and think that they create a commercial disincentive to expand their craft and operations, that’s something the Government will be open to consider. Our intent is not in any way to impair the fishermen; it’s to assist the fishermen, the industry to expand. We’d be open to reviewing it, and the Government would to what it can to assist.”

Mr Maillis, though, said the fisheries industry’s greatest concern now was whether the changes will be enacted in time for crawfish season. “Let me tell you what the problem is right now,” he explained. “The unfortunate reality is this legislation took effect on July 1, and lobster season opens on August 1.

“Commercial fishermen have been greatly disadvantaged by this. A lot of commercial fishermen only activate their vessels in time for lobster season, so right now they are faced with a drastic situation where they have no choice but to accept the registration fees as they stand or not go out to sea.

“Many fishermen are faced with this situation. They know the fee schedule is going to be amended, but cannot wait. It’s our hope that the fishermen who submit and pay their registration fees during this period are given some credit towards future annual renewals as compensation,” Mr Maillis continued.

“It would be very unfair for them to pay the higher fees that the Government is adjusting, while anyone who can wait for the revised fees has the luxury of paying x, y and z, but all those who can’t wait are stuck. We’re hopeful there will be some sort of credit for them. We’re happy this is being done and they are coming to a solution with us.

“It’s really unfortunate that the Government passed this ahead of the lobster season. The lobster industry is our primary export industry in the country, and putting commercial fishermen at a disadvantage is very unwise in this legislative cycle,” he added. “It’s an unfortunate and avoidable circumstance.

“Had the fishermen been properly consulted before the passage of this legislation, and it is alleged the industry was, but as a representative of the largest fisheries body in the country we were not consulted. We were blindsided. We had no apprehension this was coming, otherwise we would have intervened ahead of time to come to a more reasonable fee schedule.”

Mr Maillis also argued that the tax treatment for imported commercial fishing vessels, acquired overseas then brought back to The Bahamas, “needs to be revised” because the Budget reforms have placed them at a disadvantage - and in a worse spot - than pleasure craft and private boats. While the latter categories now have VAT and duty both eliminated on their importation, commercial fishing vessels still only enjoy a duty exemption - and must still pay the 10 percent VAT.

And, away from the commercial fishing implications, Mr Maillis said he was concerned about the financial impact the first-time and annual renewal fee hikes will have “on the average Bahamian who owns a boat”. He warned that it could act as a disincentive to access the sea and enjoy the ocean, while leading to an increase in unregistered and illegal vessels.

‘I myself, as a boat owner in a commercial and recreational capacity, find it very hard to swallow that the average Bahamian who owns a boat and uses it once or twice a year to go out with the family, go fishing or go to the cays.. whatever they do to enjoy the culture of this country is faced with a very expensive fee schedule to register their boat,” he added.

“Even though we’re grateful the concerns of commercial fishermen are being addressed, it still pains me as a Bahamian to see everyday Bahamians who own vessels are going to be so financially impacted for the foreseeable future just for having a boat. It’s going to discourage every Bahamian from being able to go out and enjoy the ocean.

“If the Government is of the mindset these fees are to take advantage of new foreign vessels being registered in The Bahamas as part of a push to have more vessels registered in this country they should have really continued with the distinction between Bahamian-owned and foreign-owned vessels,” Mr Maillis said.

“While I applaud the Government for seeking to make more money from people taking advantage of this country’s lax tax code and not paying their fair share of financial costs, it’s distressing that in attempting to appear fair to foreigners they are making Bahamians pay the same fee. It seems contrary to the ‘Bahamians first’ stance of this government. It’s very hard to swallow and I hope they will have a rethink.

“I hope in time that the entirety of this policy will be retooled and reworked. As I warned the Port Department, this new policy is going to lead to a drastic reduction in Bahamian-registered vessels period. Not only is it going to reduce Bahamian access to the ocean, it’s going to lead to a lot of illegal vessels on the sea. People are not in a financial position or are unwilling to pay this exorbitant ten-fold fee increase.”