The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

PRIME Minister Perry Christie yesterday questioned why the Bahamas Telecommunications Company’s (BTC) majority owner had decided to divest its European holdings, as he hinted that the option of renationalising the carrier was open to the Government.

It is unclear why Mr Christie linked Cable and Wireless Communications (CWC) European sale to the Government’s attempts to win back majority control at BTC, although he yesterday promised there would be a resolution to the issue.

He also referred to Belize’s decision to renationalise its formerly privatised phone company, in a clear effort to intimidate CWC, although there is no comparison between that and the situation in the Bahamas.

Mr Christie, who was the keynote speaker at the 22nd annual Bahamas Business Outlook conference, reiterated that his administration’s decision to appoint a negotiating team and  pursue a majority stake in BTC was rooted in the Progressive Liberal Party’s (PLP) campaign promise to do so.

“I am advised that Cable  and Wireless has divested itself of all of its European holdings.” he said.

“As Prime Minister, I should be concerned as to whether that has any implications for the decision that led to them coming to the Bahamas.

“Was it because they are a major player worldwide, and now they are reducing themselves to this region? Is this a conversation that my government should have? At all material times I represent 49 per cent of the shareholders, and I understand my obligation to protect that investment,” said Mr Christie.

“We are going to have a resolution to the matter, and I hope that it will be manifested in both the best interest of the people of the Bahamas and the shareholders of Cable and Wireless.”

Geoff Houston, BTC’s chief executive, told Tribune Business that CWC’s move to sell its European holdings should benefit the Bahamas, which is effectively the ‘crown jewel’ in its Caribbean holdings.

It will allow CWC to place renewed emphasis and focus on the Bahamas and wider Caribbean, and free up capital to potentially invest in BTC.

Mr Christie had recently indicated that the Government was making little to no headway in wresting back majority control of BTC.

The Government’s four-member negotiating team,comprised of Arawak Homes chairman Franklyn Wilson; former BTC chief executive Leon Williams; ex-Ministry of Finance legal adviser Rowena Bethel; and ex-attorney general and key confidant of Mr Christie, Sean McWeeney, began face-to-face talks with their CWC counterparts last October.

During his presentation, the Prime Minister projected that the Bahamas would see 2.7 per cent gross domestic product (GDFP) growth in 2007, higher than the International Monetary Fund’s (IMF) 2.5 per cent estimate.

He added that addressing the public finances was of “paramount importance”, noting that the country’s expenditure was outpacing its revenue intake.

Mr Christie said the Government was also moving ahead with its plans for tax reform. On the tourism front, the Prime Minister noted that the Ministry of Tourism was set to launch an aggressive $15 million marketing campaign, with added focus to be placed on sectors such as religious and medical tourism.