The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamians were yesterday urged to "rebuild our country from within" and "think twice" about spending money abroad as the prime minister gave the go-ahead for the retail sector's full re-opening.

Egan Kemp, president of Eunison Company, the Shoe Depot parent, told Tribune Business it was "hugely important" that retailers such as his be allowed to open their stores to customers even if COVID-19 health protocols result in reduced volumes.

Having already "terminated half of my staff", Mr Kemp said he would bring back all remaining employees immediately until he obtained a better understanding of how much consumer demand remains in the pandemic's wake.

Also hailing the government's decision to introduce a two-week "back-to-school" VAT holiday to relieve the financial stress on hard-pressed consumers, Mr Kemp pleaded with Bahamians to shop at home and keep dollars circulating in the economy - especially for products whose prices can match those offered in Florida and other US states.

"I encourage all Bahamians, especially those with light purses, to really shop at home," he told this newspaper. "Compare the prices and rebuild our country from within. We have to stop spending money abroad on bringing things in. That does not provide jobs for Bahamians.

"Where a local retailer is offering product at US prices, please think twice about supporting foreign businesses when we can provide the same-priced shoes in The Bahamas."

Mr Kemp added that the Government's decision to waive import duties on apparel and footwear in the 2018-2019 Budget had enabled Bahamian retailers to finally compete on price with their Florida rivals, and the two-week VAT holiday unveiled with the 2020-2021 Budget - which will take place just before the new school year starts - will help counter the sales tax waiver offered in the US state.

"I thought that was a really commendable act by the Government, and it really helps Bahamian businesses compete with Florida-based businesses that are able to do the same every year," he added. "It is absolutely the one thing I can praise this government for.

"By removing the duty we were able to go to US prices straight by removing the taxation from us, and the consumer enjoys the same prices. This VAT holiday allows Bahamian consumers to shop at home, and take money from the plane ticket and afford things in Nassau.

"I do commend the Government for that duty-free structure. They did it exactly right for only businesses that sell the product. That action on our behalf helped us to become more competitive and removed a lot of bad players in the game. When there's no duty in the game, cheats can't cheat."

Marlon Johnson, the Ministry of Finance's acting financial secretary, yesterday confirmed that the two-week VAT "holiday" will be treated as "zero rated" rather than "exempt". This means that retailers, too, will be able to reclaim all their VAT input costs involved in purchasing stocks and other items, thereby further lowering costs and providing greater savings potential for consumers/.

Mr Kemp, meanwhile, said it would not necessarily be a swift rebound in employment at his business. "I already had to terminate half my staff. They were permanently terminated," he revealed. "We won't be bringing everyone back on immediately. We will stage up to see what business activity is there."

Voicing concerns about the reliability and cost of Bahamas Power & Light's (BPL) energy as the summer months approach, the Shoe Depot chief repeated his previous pleas for the Government to take a more "equitable" approach should it become necessary to re-impose a COVID-19 lockdown and ensure that all businesses - bar the likes of food stores and medical providers closed.

Mr Kemp spoke out after the Prime Minister told the House of Assembly that the pandemic has been sufficiently contained to allow The Bahamas to move to "phase three" of his economic re-opening strategy, which primarily allows all so-called "non-essential" retailers to open their stores to customers - provided social distancing, sanitisers and other health protocols are in place - with effect from Tuesday, June 2

"Because we are making progress, we are moving into Phase three of the reopening of the economy and the country," Dr Hubert Minnis said. "All non-essential storefront business operations on New Providence, Grand Bahama and Bimini, for example, furniture stores, clothing, shoes, jewelry, cosmetic and other miscellaneous retail stores may resume business operations Monday to Friday 9 am to 5 pm with essential staff required to allow the business to function, but with physical distancing and sanitisation."

Mr Kemp said he was checking to see what the Prime Minister meant by "essential staff", as Dr Minnis reminded Bahamians that "phase three" represents "the new norm". He added: "We've entered a new frontier, a new world or the new norm.....Even as we reopen, we must remember that we are living in a new normal, in which we must continue to practice physical distancing, proper sanitization and wearing masks

"If we do not collectively observe these measures and community spread widens, the country may have to revert to earlier phases." Dr Minnis warned that, if this was to occur, "the entire Bahamian economy can be destroyed rather than just losing a few jobs", reminding Bahamians that "your future, our future is in your hands".