The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Consumers and businesses were yesterday urged by a senior Chamber executive “to support what is Bahamian” by shopping at home for the majority of hurricane relief and restoration supplies, so as to get the economy “back on the right footing”.

Edison Sumner, the Chamber’s chief executive, told Tribune Business he hoped that once the Government’s Hurricane Matthew ‘exigency Order’ was posted, it would incentivise a ‘buy Bahamian’ drive “to spur” commerce back to life.

“I think that’s going to be very helpful for the residential and business communities,” Mr Sumner said of the Order.

“Once it is read, we’re looking for incentives to be in place for the business community, so that not everybody is looking to go abroad to import the goods they need, be it building materials, furniture, appliances.

“We want to encourage as much of the shopping as possible to be done at home. It’s important to show support for the business community, many of whom are closed, and many of whom may not re-open, because the loss is too severe.”

Mr Sumner said the Chamber was especially focused on small and medium-sized enterprises(SMEs), which are widely regarded as the backbone for many economies, but often lack the insurance coverage or financial reserves to recover from storms such as Matthew.

He disclosed that the private sector organisation was in discussion with the Government and providing further storm-related incentives that would be targeted at SMEs, and the wider business community, although he declined to identify them.

“We believe that based on the work done by the Chamber with the Government, there will be incentives for businesses to participate on the exigency Order,” Mr Sumner told Tribune Business.

“The Chamber will articulate this position fully in the next day or so, that people are fully aware. We have a level of partnership to ensure we support this economy, particularly the small business sector, while we recover from this devastating storm and get the economy back on the right footing.”

Mr Sumner added that provisions would be made for Bahamian small businesses to access credit lines and financing, so they could repair properties, replenish inventory and become operational again.

He acknowledged that government institutions, such as the Bahamas Entrepreneurial Venture Fund (venture capital fund) and the Bahamas Development Bank (BDB), would “be part” of this initiative.

“There’s going to be further provisions and incentives given out for small companies impacted by the hurricane to access other lines of credit and funding to get their businesses up and running,” Mr Sumner told Tribune Business.

“Once the exigency Order is signed and posted, it will incentivise people to spend most of their dollars at home to spur on the local economy.

“It’s going to be important for everybody to support what is Bahamian, and support our local economy, especially in those impacted Family Islands.”

He continued: “Micro and macro businesses may need to go outside to replenish supplies, but we want to encourage people to shop at home as much as they can; retailers and small companies to buy from wholesalers, and to buy from hardware and building materials supply stores, taking full advantage of the exigency Order.”

The exigency Order proposed by the Government in the wake of Hurricane Matthew will last for 180 days from October 7, and allow Bahamians and businesses to import key recovery items free of Customs duty and ‘border’ Value-Added Tax (VAT).

The Order, which only applies to the impacted islands of New Providence, Grand Bahama, Andros and the Berry Islands, is focused on providing ‘tax breaks’ for key restoration items - building materials, automobiles, heavy-duty appliances and food/water.

Goods that will be tax exempt include building materials; electrical fixtures and materials; plumbing fixtures and materials; household furniture; furnishings and appliances; bottled water; generators; and motor vehicles.

Bottled water imports will only be allowed for 60 days, and the Prime Minister has the option to extend the exigency Order beyond its April 4, 2017, expiry.

Departure tax on flights bringing in relief supplies, and associated Customs processing fees, will only be waived for the three-month period starting on October 7, 2016.

Mr Sumner said the Chamber’s Board would meet today to determine its “contribution” to Matthew relief efforts, and what it will seek in negotiations with the Government on the private sector’s behalf.