The Tribune

By KYLE WALKINE

Tribune Staff Reporter

kwalkine@tribunemedia.net

MINISTER of Works Philip Davis yesterday denied that the government’s proposed break-up deal of the Bahamas Electricity Corporation (BEC) will lead to mass layoffs.

When asked by The Tribune about the possibility Mr Davis, who also has responsibility for BEC, said “there is absolutely no truth” to the claim. 

However, a well-placed source within the government told The Tribune that all of the companies that have placed proposals to purchase BEC have indicated

plans to downsize staff. 

Mr Davis announced on Tuesday that recommendations for the preferred bidders who submitted proposals were being reviewed by Cabinet and that a decision should be made within two to three weeks. 

Since plans were announced to possibly split BEC into two separate entities its Executive Chairman Leslie Miller has indicated that he was not in support of the deal, unless it is to a Bahamian company. 

Mr Miller told The Tribune yesterday he could not say if layoffs were likely to occur at BEC. However, he said that decision would lay with the company the government selects.  

“Once this process is complete and Cabinet makes a decision, the chosen new entity would then have to assess BEC,” Mr Miller said. “If you’re in a situation where you are losing money what would you do? Right now, BEC is in a position where it is about to lose $30m. Any company in the world, the first thing they look at in cutting cost is staff.

“If you look at the high salary costs in BEC, which is totally out of whack with the rest of the business community, adjustments will take place. I believe it’s a normal thing. I’ve been in business now since 1978. I never missed a payroll in over 30 years. So I know what it takes to run and manage a business. I have to make a payroll every week, which I’m still doing today.”

Bahamas Electrical Workers Union (BEWU) President Paul Maynard said BEC unions have gotten word that the prime minister and deputy prime minister will meet with them after the budget debate is complete about the issue. 

Mr Maynard added that he does not fear layoffs. 

“It is what it is,” he told The Tribune yesterday. “We understand what we are dealing with.

“We have absolutely no problem with privatisation. All we want is for there to be lower light bills in the country, which can come through the use of natural gases. If they introduce that, people will see their light bills decrease by 50 per cent.” 

Under the deal the government is proposing that a new transmission and distribution company be responsible for the operation, maintenance, repair, and expansion of BEC’s electricity transmission.

The company will also be responsible for distribution systems, billing, collection, customer services and other relevant services across the Bahamas. The second company will be a new generation services company.