The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

OPPOSITION Shadow Minister for Finance Peter Turnquest believes the sale of the British Colonial Hilton and adjoining property to a state-owned Chinese company has concerning labour and foreign policy implications for the Bahamas.

Mr Turnquest was speaking to The Tribune two days after the government announced on Friday that it has approved the sale of the Hilton to the China State Construction Engineering Corporation (CSCEC).

When contacted for comment yesterday, FNM chairman Darron Cash also expressed concern about what will be the CSCEC’s key involvement in the redevelopment of downtown Nassau.

Mr Cash had harsh criticism for what he sees as the “Christie administration’s way of outsourcing every aspect of national development to foreign nationals.”

The CSCEC is currently building the $3.5 billion Baha Mar resort and has a $150m equity stake in that project.  

Mr Turnquest said he has no issues with the Hilton being owned by a foreign company, adding that Foreign Direct Investment (FDI) is necessary to develop this country.

“However,” he said, “I have a problem with such a key area of our economy being concentrated in the hands of any one particular entity. The China State Construction company is involved in the Baha Mar project and now, if the reports are correct, they are spearheading the downtown redevelopment.

“This is a China state-owned entity, which raises the issue from one of foreign direct investment to one of foreign policy and the implications that may arise from that. We appreciate their assistance over the years, whether technical or financial, but we have to be careful and try to diversity the types of investors that we attract so we don’t have a situation where one entity could dictate public policy.”

While the CSCEC has announced its intention to create 500 permanent jobs downtown, Mr Turnquest expressed concern about the impact the sale of the Hilton will have on labour relations in the country.

“There was tremendous uproar which the present government took advantage of with respect to Chinese labourers assisting to build Baha Mar,” he said. “What is their intention with respect to the work intended to enhance this product? Will Bahamians find themselves in a disadvantageous position again? This goes beyond just foreign investment and into how it will complicate labour relations and affect Bahamian workforce, certainly in the construction stage at least. “

Mr Turnquest also questioned the sustainability of the CSCEC’s plans to develop the long vacant, adjoining property to the west of the Hilton with a hotel and condominium units.

He said: “We are in a period of change with respect to the tourism industry. We have tremendous competition from the USA and the Caribbean. Building hotel rooms is a wonderful thing but you have to find the airlift and the markets.

“Baha Mar has put forward that they will be attracting gamblers. I believe that market is tremendously fickle at this point. They were talking about attracting the Chinese, as it is, and there is a tremendous market there, but access to the Bahamas from China and the Far East is not easy. In this period of global travel we have to be concerned that we won’t produce numbers that will be unsustainable.

“Where will the visitors come from? Will they be one-off or will it be sustainable? We have to be concerned about whether government subsidies and the rest of it will be necessary to keep these hotels afloat. I’m of the belief that hotels should be taking care of themselves without governments having to promote these properties. So the issue of sustainability has to be a serious concern. The affect that this additional inventory will leave on room rates and other hotels needs to be considered.”

For his part, Mr Cash criticised Prime Minister Perry Christie for not pushing harder to ensure Bahamians became owners of the Hilton.

He said: “(One) noteworthy comment from the announcement (of the sale on Friday) was the declaration that CSCEC has agreed to join in a partnership with the government and other stakeholders along Bay Street to implement a plan for its redevelopment … No one knows quite what this means … (but) we do already know what Prime Minister Christie’s modus operandi is.

“He demonstrates little confidence in his own people. It seems to me that if Prime Minister Christie has his way every aspect of national development will be outsourced to foreign nationals. Nothing is sacred. This Prime Minister came to office in part by exploiting Bahamians’ anger over the sale of majority interests in BTC to a foreign company. Yet as soon as (he became) Prime Minister he was pitching the sale of wireless/cellular licences to his favourite foreign company.

“The idea of ‘Bahamians first’ was dead on Mr Christie’s arrival to office. The idea of engaging the Chinese to lead the redevelopment of downtown is as offensive today as the use of foreign students to tell him what to do was the last time this idea came to him when he was Prime Minister between 2002 and 2007.”

Mr Cash said Mr Christie, focused on his legacy, “is resorting now to microwave fixes designed to force ripe matters that should start with the people and take time to develop and become home grown.

“This ‘microwave’ approach is the same approach he is using to having an external agency impose a national development plan on Bahamians, and it will not work. Bahamians should own and lead every major aspect of the development and redevelopment of downtown. This should not be outsourced to any foreign national or entity.”

Yesterday, PLP Chairman Bradley Roberts dismissed criticism of the sale of the Hilton to the Chinese company, saying that he is “surprised by the people and their ignorance.”

“Those people came up with the best deal and the government endorsed it,” he said.