The Tribune

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

THE union representing Grand Lucayan workers believes the government will recoup all financial expenses used to purchase the resort and more.

Michelle Dorsette, President of the Commonwealth Workers Union of Hotel and Allied Workers, was optimistic yesterday in response to reports the government’s total spend on the resort may far exceed the initial $65m paid to acquire it.

This as insiders say back pay owed to workers since 2008 totals more than $2m, double the $1m previously reported.

Ms Dorsette would not say whether this figure summed up arrears due to employees, but she confirmed figures were submitted the government relating to severance, money owed to the union and back pay.

As he concluded debate on the resolution to secure the remaining $35m to shore up the Grand Lucayan sale, Deputy Prime Minister Peter Turnquest last week said the hotel’s total financing needs, inclusive of the $65m purchase price, could almost double to $124m.

“We didn’t want the burden to be on the government,” Ms Dorsette told The Tribune yesterday in an interview. “We wanted Hutchinson not to get away with what is owed to the workers.

“We were battling that but I just want people to understand we are not rejoicing because the government taking over.

“These investors have to be held accountable and stop walking out leaving these things like this. Legislation has to be passed to stop these people from doing things like this.

“But I have trust in the government that they will do the right thing.

She continued: “I don’t think they are going to lose out, they are going to get back what they actually paying out and more. Governments are smart they are going to get their money back.”

On Thursday night, Mr Turnquest further explained the government would come back to Parliament with a new resolution once the cost estimates were better defined. If the $124m figure proves accurate, it means a further $59m will have to be found.

He said: “It is important to point out that the cost related to the acquisition of the property does not represent the sum total of the Government’s commitment to see this project through. We are in the process of finalising what we believe will be the necessary resources in order to ensure the property remains viable; to ensure we undertake the immediate renovations and repairs that may be required; that we provide sufficient marketing and other operational support necessary to secure the onward sale of the property. Current estimates put the total capital financing needs around $124m, including the purchase price.”

Mr Turnquest said future resolutions, if needed, “will capture any further guarantee needed of the Government to secure the full resources for supporting the operation of the property while a new buyer is identified”.

He added that the Board of Lucayan Renewal Holdings, the special purpose vehicle (SPV) that was “shepherding” what is intended to be temporary government ownership and the search for a viable buyer, had been given clear instructions to incur costs that are only absolutely necessary to minimise the taxpayer’s exposure.

Mr Turnquest’s comments tie into the point Exuma’s and Ragged Island Chester Copper and other opposition member made during his contribution to debate.

At the time, the Opposition said the $65m far from captures all the costs associated with acquiring and operating the resort, with Mr Cooper “conservatively” putting the overall cost at $100m.

The government has maintained there would be catastrophic consequences for Grand Bahama should the hotel not be purchased.