By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A BAHAMIAN businessman and leading governance reform advocate yesterday slammed opponents of the Commercial Enterprises Bill (CBE), arguing ‘xenophobic and myopic thinking’ will ‘send the country bankrupt’.
Robert Myers, a principal with Organisation for Responsible Governance (ORG) argued immigration fears being stoked over the CBE were likely politically motivated or due to a lack of understanding of the issues.
“The government has to make a determination as to where and how it is going to stimulate the economy. There may be people complaining about the immigration aspect to that but I think that is probably being politicised. You’re going to need foreign direct investment and foreigners who have the ability to bring capital into the country. We’re facing a failing financial industry and the average person not in that business may not understand that. The government needs to improve conditions for Bahamians and stimulating the economy outside of education is the single most important thing the government needs to be focused on,” said Mr Myers.
The Minnis administration has stated the Commercial Enterprises Bill will ensure “that Bahamians are the priority,” despite the fact it will “liberalise the granting of work permits” to foreign companies.
Officially known as an Act for the Designation of Specified Commercial Enterprises and Specified Economic Zones in The Bahamas, the Commercial Enterprises Bill “seeks to liberalise the granting of work permits to an enterprise that wishes to establish itself in the Bahamas, and requires work permits for its management team and key personnel.” The company’s investment however must be a minimum of $250,000.
As previously reported by Tribune Business, if passed into law as is, the legislation would enable a “specified commercial enterprise” to obtain an Investments Board certificate granting it a specific number of work permits for certain positions.
The certificate, which will initially be issued for one year and can be renewed, would allow key personnel to set up the company’s physical operations in the Bahamas before they obtained a work permit. Such a permit must be applied for within 30 days of their entry, and the bill mandates the Director of Immigration to make a decision on approval within 14 days of receiving the application. If the director does not respond within that time-frame, the work permit will be “automatically deemed to have been granted”. Work permits issued under the bill’s provisions will be for a three-year period, and are renewable for the same duration. They can only be revoked on grounds of “public safety, public morality or national security”.
“There is a tremendous skills gap and there is a significant lack of qualified middle management,” said Mr Myers.
“We should give that immigration preference to Bahamian companies where there are skills gaps. If we don’t get upward mobility in employment we will not get growth. If you want to hold back the economy, keep being xenophobic and myopic in our thinking and the country will go bankrupt. They are either politically motivated or stimulated by ignorance and people who don’t understand economics.
“Anyone who understands what drives and economy could not possibly argue that this is a bad idea. I have skills gaps in construction but yet it cost me thousands of dollars a year for a work permit. They need to lower the price of those permits and get the economy moving. Many small businesses can’t afford those work permits. The permit cost is only the first part of our problem in the private sector.”
Comments
birdiestrachan 6 years, 11 months ago
No surprise from Myers more than likely he has told roc wit doc what he wants and doc will do as he is told. Mr: Myers always give one the impression that he does not want to pay for work permits.
birdiestrachan 6 years, 11 months ago
There is nothing in these bills to benefit the average Bahamian . The rich will get richer and the poor will become poorer. But one has to admit it is a choice they made May 10. 2016
bogart 6 years, 11 months ago
Whichever govt can have as much foreign policy change, foreign investments till the cows come home but unless whichever govt is prepared to first stop the hemmoraging of arterial life blood VAT money collected on top of Customs Duties and wasted, poured some 300 million into the Bank of the Bahamas, poured into other govt entitoes and none of their own appointed to these Boards be held accountable, millons spent for Defence and smugglars boats still landing, millions spent on hospitals, schools for children born to illegals who can avoid detention for years until their children are 18 and can apply for citizenship on this small island, growth of huge illegal shanyytowns and no employer ever charged,millions spent to keep and send them back.
AND now inviting further imputs foreign or otherwise to do what???......be poured into the same existing holes??? Clean the house first before having guests over, always wear clean underwear before going out, make sure you brush yer teeth and clean the bippy from yer eye before going out, dont dress shabby, its the pratfall effect.
DDK 6 years, 11 months ago
Indeed!
Socrates 6 years, 11 months ago
no small country like the Bahamas and many others, have a chance at significant development without foreign investment.. the resources just aren't here.. until we get our people to understand this, its mission impossible to grow this economy...
ThisIsOurs 6 years, 11 months ago
You are 100% correct! but win win is the word of the day. the question is what do we get for what we're giving up. If the only thing we get is 250,000 up front payment from a company that could be making millions for decades, I call that an extremely poorly negotiated deal. tax empty no requirement for training or hiring Bahamians. If you aren't concerned that they passed the law and THEN said well figure out how to protect Bahamian interest later I don't know what to say..
They're selling the imaginary prospect of "jobs" but that is exactly what this bill cuts out, " jobs for Bahamians"
TheMadHatter 6 years, 11 months ago
Socrates and Myers are correct. This is an awesome great Act. The Bahamas can become the center of so many new modern tech / finance enterprises if only we would allow it to.
Minnis is going to allow it to.
But i guess some of yall just like paying RBC $15 to cash ya paycheck.
JohnDoe 6 years, 11 months ago
Give me one commercial reason why any of these companies would domicile in the Bahamas?
OldFort2012 6 years, 11 months ago
There are several reasons: English language, English law, proximity to US, low tax, decent private schooling.
But it will have a marginal benefit for the economy. A total of 200-300 people will come here and generate a maximum total of 500-1000 jobs locally.
I can see freelance software developers and other such "lone-wolf" operations. But overall you are right: nothing that will generate the numbers and quality of jobs this country needs. It is a small start. That is all.
JohnDoe 6 years, 11 months ago
Although our legal system is based on British common law, giving out work permits to foreigners will not incentivize economic development if we continue to have a weak rule of law as it relates to crime especially retaliatory crimes against witnesses, judicial inefficiency and ineffectiveness with respect to the enforcement of property rights and the delay of criminal and civil trials and a lack of government integrity. Additionally, it does not help when our competitiveness ranking vis-à-vis other nations is falling and it continues to take one month plus to open a simple bank account, one month plus to get a business license and other government approvals. Also unhelpful is having to deal with high utility and infrastructural costs with unpredictable and poor service quality and having to deal with significant skill gaps in the labour market with bad attitudes to top it off. Also, remember that most jurisdictions assess taxes based on citizenship and worldwide income and not domicile. So living in the Bahamas or earning income in the Bahamas would not necessarily reduce someone's taxes in their home country.
It is not that this legislation is good or bad, the issue is that we have not clearly articulated a comprehensive value proposition within the larger scope and framework of governmental, regulatory, judicial, business practices and ease of doing business reform that would enable this legislation to be transformative.
OldFort2012 6 years, 11 months ago
While you are absolutely right that we have not "clearly articulated a comprehensive value proposition" and that we must do so, you are plain wrong about "most jurisdictions assessing tax based on citizenship". The only one that does that is the USA. The only one. Already in the past few years you are seeing dozens of software developers from the EU coming here to live and avoid the high taxes at home. Many more will follow. Not because of this Act, but it will help, at the margins.
JohnDoe 6 years, 11 months ago
When I was creating offshore tax shelter structures many many years ago, tax avoidance was a viable strategy both for high net worth foreigners seeking tax relief and for jurisdictions like the Bahamas. Without belaboring and getting into a detailed discussion on international taxation in general and tax avoidance in specific, my general point is that tax avoidance/minimization/tax haven or whatever one calls it these days is not a winning business model or value proposition for offshore jurisdictions in the current international regulatory environment. Additionally, it is unlikely that the low threshold of $250K will create Bahamian jobs but I suspect it may attract undesirable black money to our jurisdiction. In general this Bill in addition to being anti Bahamian is also a wholly inept tax minimization tool. If we are really serious, why not include lawyers in the lists?
JohnDoe 6 years, 11 months ago
Why bend over backward only for foreigners when there are at least 100 different things government can do today to incentive Bahamian entrepreneurs and small businesses that would have an instantaneous effect on job creation and GDP growth. WHY! One of the primary forces that keep us down is that our politicians are pushing agendas that drive and promote their self-interest and look at political office as a means to further enrich themselves and their friends.
JackArawak 6 years, 11 months ago
Does anyone have a better idea?
JohnDoe 6 years, 11 months ago
Absolutely!
ThisIsOurs 6 years, 11 months ago
Yes. Working on it. Empowering Bahamians and it's not pie in the sky they will walk away with the ability to generate their own income individually and as a group
TheMadHatter 6 years, 11 months ago
JohnDoe i agree that someone can make a LONG list of things that need to be done - and you just did a great job at it. However each day if a step forward on ONE item is made then after awhile a snowball effect will ensue and the gross picture of improvement will become clear to the layman.
People also need to bear in mind the auxiliary spending from businesses such as stationery, express mail packages, internet services, pizza delivery, staff parties, plaques & awards, repairs ti company vehicles, insurance, BEC, W&S, etc.. It's not just the salaries.
Porcupine 6 years, 11 months ago
One of the biggest problems here is that there is so little emphasis on actually getting things done. As a student, one should realize that getting further and further behind on your homework will assure that it becomes increasingly more difficult to EVER catch up. That's where we are in this country. It is a culture of putting things off. Now, I predict it is too late to ever catch up. Until, we change the culture.
ThisIsOurs 6 years, 11 months ago
It's never too late unless you're dead. Will you know or have everything that the guy who worked steadily for years has? No. But sometimes you can make a break without "everything". There's a step in there that's up to the universe.
killemwitdakno 6 years, 11 months ago
This WTO mode 4 requirement isn't even FDI, it's companies abroad that can be allowed to do whatever they need to for business nnthus jurisdiction.
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