The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Fishermen yesterday urged the Government to promptly disclose the new “reduced” boat registration fees prior to their March 1 introduction and ensure all Bahamian-owned vessels are “protected’.

Keith Carroll, the National Fisheries Association’s (NFA) president, told Tribune Business the Ministry of Transport and Energy needed to go further than simply unveiling the implementation date so that the sector and other boat owners can budget financially following the anxiety created by up to ten-fold and greater fee hikes that are now being rescinded.

The ministry, in a statement issued yesterday, confirmed: “The Ministry of Energy and Transport wishes to advise members of the public that the Government of The Bahamas intends to implement a reduction in boat registration fees with effect from March 1, 2024.

“Following the implementation of the new reduced fees, the Ministry of Finance will provide guidance on an exercise to ensure that boaters who registered prior to the reduction also receive the benefit.” This likely means that those that paid up to four-digit fee increases for new or renewed registrations will likely receive a credit towards these costs in future years. 

The ministry also reminded all boat owners that the lawful registration deadline is March 31, 2024, and added: “The Davis administration is committed to addressing the concerns raised by boaters and will give priority to supporting the blue economy and commercial fishermen throughout The Bahamas.”

“It’s good. At least the fishermen know what’s going on,” Mr Carroll said of the ministry’s announcement. “Everybody was ‘you say, I say’. We didn’t know what was going on. That’s why the fishermen were making a lot of noise.”

However, he added that the industry and all boat owners still “have no idea” of what the new fee structure will look like or how much they will have to pay. “It would be good to know what they are,” the NFA president said of the new fees. “If they are going to put it out on March 1, that’s three to four weeks away. They probably know what it is.

“They should have put the fees out one time. Why should we have to be waiting, wondering what it is? Why can’t they put it out right now? If it’s March 1, we shouldn’t have to be waiting to learn what the new fees are.”

Chester Cooper, then-acting prime minister, confirmed last month that the boat registration fee hikes unveiled in the 2023-2024 Budget had been suspended pending further review and consultation. He signalled that the changes will likely be made in the mid-year Budget at end-February, which is why the March 1 implementation date has likely been selected.

Mr Carroll, though, said he was unaware of anyone from the NFA or wider fishing industry being consulted over the new fee structure. “No one, no one,” he replied. “It just shows you the respect they have for the fishermen. It’s take it or leave it. Whatever they give. They’re just doing what they want us to do. We just wait and see.”

The NFA president reiterated his previous position that the boat registration fees were too low, and needed to increase, but suggested a 100-150 percent rise would have been acceptable rather than increases of a few thousand percent. He added that it was still possible that the fees may be reduced by only a few hundred dollars - not nearly enough compared to what the industry wants to see.

And Mr Carroll suggested that the Port Department also switch to a per foot levy based on each boat’s length, arguing that someone with a 20-foot boat should not be charged the same levy as the owner of a 30-foot or 40-foot vessel.

Meanwhile Paul Maillis, the NFA’s secretary, praised the Government for implementing the fee reductions ahead of the March 31 registration deadline and for seemingly offering credits to those who have already paid the higher fees. However, he echoed Mr Carroll in calling for the new fee schedule to be published immediately so that boat owners have “ample time to prepare themselves financially”.

And Mr Maillis also questioned if all Bahamian-owned vessels will receive the same treatment given the initial confusion that surrounded Mr Cooper’s suspension announcement and the Port Department position that it did not apply to all types of boats and vessels.

While the fees were indeed suspended for privately-owned vessels, including fishing boats, the Government agency was informing boat owners that the hiked fees still apply to commercial craft such as charter boats and passenger-carrying vessels. This meant that tour and excursion operators still potentially faced up to four-digit percentage increases in their first-time and annual registration fees.

“If this is about protecting Bahamian businesses, we need to make sure all businesses and their boats are protected,” Mr Maillis said, noting the Government’s assertions that its intent had been to target high-end yachts and foreign-owned vessels.

“It’s an undeniable reality that in the fishing industry many of the small fishermen engage in charter fishing and commercial fishing,” he added. “This may lead to concerns that if a vessel is used for charter and commercial fishing, under which designation does that vessel fall?  To avoid that problem, we need a definition that encompasses all Bahamian boats in general.

“Fees may be being reduced for private vessels used for commercial fishing, but they could be used for other purposes. They need to make that much more clear, the definition much more distinct and give Bahamian-owned boats a much more affordable rate no matter what business they are in.

“When it comes to privately-owned vessels, whether used for commercial fishing, charter fishing or running charters in general, these should be given a reasonable rate. I hope this review is comprehensive and deals with some of these issues.”

Excursion operators, meanwhile, are in “wait and see” mode to see if the boat registration fee reductions also extend to their industry. Adoni Lisgaris, the Bahamas Excursion Operators Association (BEOA) president, told Tribune Business: “I will believe it when it happens, but I don’t want to get excited too early like last time. When I get there and they give me some money back then I would believe that.

“The excursion business is important to The Bahamas because we contribute to the foreign reserves. The Bahamas doesn’t have any money so all of our sales are in US dollars, so we supplement the bank with US dollars. So everything we charge in US dollars goes to the Central Bank and then they give me Bahamian dollars. So, without tourism, The Bahamas is nothing because it’s the only way we get US dollars here.”

High boat registration fees have a “trickle down” effect on all tour and excursion operators because they pass the increases on in consumer prices. There are fears this could give a competitive advantage to illegal operators who are ducking paying taxes.

Mr Lisgaris said: “We have to pay taxes, but the illegal operators have to pay nothing and often-times the tourist will go to the cheaper option. We try to explain to them that those excursion operators with the lower fees are operating illegally, but all people see is the fact that we have to charge VAT and higher fees because we have to pay taxes.”