By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A Bahamian developer yesterday revealed he is “one and done” because the process of obtaining all the necessary permits for his present multi-million project was “just too painful and expensive”.
Robert Myers, who is spearheading the Windsor Lakes development in south-western New Providence, told Tribune Business that he “won’t do another development” due to the challenges encountered in gaining timely approvals with construction permits “taking three to four months” to come through.
Speaking after the Government pledged that incentive-based legislation is being developed to accompany the 15 percent minimum corporate income tax Bill, in a bid to improve this nation’s ease of doing business, he asserted that “not one” Bahamian or foreign developer will say conducting commerce is simple.
Linking the Bahamas’ ease of business directly to workforce productivity and education, Mr Myers told this newspaper that while the private sector understands the country’s jobless challenge this was bound to occur from a lack of sufficient “employable people” as he urged: “We’ve got to create a workforce that’s hire-able.”
Calling on the Government to provide tax credits for companies that offer staff training and development programmes, which Chester Cooper, deputy prime minister, signalled is among the incentives being considered, he warned that investors are soon “going to overlook opportunities” in The Bahamas unless the cost and ease of doing business is properly tackled.
Mr Myers, who together with his partners was said to be investing close to $63m in Windsor Lakes when the project was first revealed in September 2022, told Tribune Business: “I tell you this. I won’t do another development. I’m one; one and done. The process is just too painful and expensive. I’ll still do construction but I won’t do another development. It’s just too painful.
“Outside of keeping the tourism sector going and strong and robust, as it’s our number one industry, ease of doing business and education are probably the two biggest drags on the economy. There are just not enough qualified people and incentives for workforce development, and the ease of doing business has gotten worse, not better.”
Asked to specify the problems, Mr Myers replied: “It’s everything in terms of boating regulations, in terms of taxation and getting power and getting services, getting Business Licences. It’s easy to pay taxes though. Whenever it’s been advantageous for the Government to receive revenue they’ve streamlined the hell out of it, but in terms of the ease of doing business for the private sector it’s not easy.
“The labour issues, the power issues and the Immigration issues. It typically all comes to a head around government agencies like the Department of Labour and labour laws, and not having a really clear and defined process. That’s why I say education. Education is a big part of the ease of doing business.
“If the workforce is not there, and you have to hire abroad to grow your business, the next thing you buck up into is the Department of Labour and Department of Immigration [obtaining work permits], and skilled labour shortages. That’s a significant impact on your business, both local and foreign. That all has to do with the ease of doing business. It’s not just the obvious things like permits.”
The Government will likely counter that it is tackling problems such as workforce productivity and inefficiency via the new national apprenticeship initiative, for which legislation has been passed, while it is also mandating that companies identify a Bahamian understudy to ‘shadow’ expatriate hires so that they are ready to take over when the work permit expires.
However, Mr Myers argued of the ease of doing business deficiencies: “Building permits; you can’t get a permit to save your life. It takes three to four months to get a permit approved, and that’s a big driver of the economy. It’s a massive blockage. There are too many areas where it’s too difficult.
“The labour process for getting skilled workers. There has to be a national, proactive plan for workforce development. We all understand the employment problem, but if we don’t have employable people we’re going to have an employment problem. We have got to create a workforce that’s hire-able.
“The schools are failing and workforce development programmes are completely insufficient and underwhelming. There’s no incentives and they have got to start doing that. It’s got to be in the private sector. We’ve got to get some tax credits to the private sector for offering. It’s critical.”
The former Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chairman said the Government needs to look at providing such incentives on an “industry-wide basis’, adding that both the Labour and Immigration departments are “telling us we can’t get a skilled workforce” due to the labour certificate and work permit policies.
Asserting that the private sector and the Government must “come together and create a skilled workforce”, with the business community leading the way on designing training courses and the certification required, Mr Myers cited the construction industry as an example. He noted that despite passage of the Construction Contractors Act, the law has yet to be enacted because the Board to regulate the sector has not been appointed.
“The private sector needs to drive,” he added. “We’ve been saying that for 20 years. This is not a new thing. We’ve been telling them for 35 years to get the Construction Contractors Act passed, get it fully funded, fully operational and it’s still floundering.
“It’s a huge section of our market. It’s the one sector that eats up the most unskilled people. It would absorb the most unskilled people if workforce hiring and development programmes were in effect. Nothing changes if nothing changes. If you don’t enact this thing, this Board, and have the right people put in these positions, nothing changes. It’s all just talk.
“The opportunities exist for whatever administration. They have to start listening to the business community and make it easier to get training. Those coming out of high school with three BGCSEs and a ‘D-’ standard, what do you do/ We have to make it easier for those people to get gainful employment and not get into drugs, gangs and criminal activity,” Mr Myers continued.
“They have to start listening to what’s going on. You have a huge amount of your population coming out with a ‘D-’ average. What are you going to do with those people.” The ex-Organisation for Responsible Governance (ORG) principal said it was the processes and systems that oversee the conduct of commerce, rather than the people in them, that are largely responsible for ease of doing business concerns.
“There isn’t a single Bahamian or foreign investor who would tell you it’s easy to do business in this country. Not one,” Mr Myers told TrIbune Business. “What we can tell you is that generally we find the people are great. They are just under-skilled and there’s a huge amount of effort we have to put in to develop our people, our workforce and hiring them.
“The systems are there, but they are highly inefficient. There’s a way to get a building permit, there’s a way to get power on, but it’s highly inefficient and takes too long. There’s a way to get your permit but it’s highly inefficient and expensive. All these things to start and drive a business are very inefficient and need streamlining. The easier it is to start a business, more people will get into it.
“Otherwise people are going to start overlooking The Bahamas because of the difficulties. You can show me all the land in the world but I’m not going to do it because it’s too damn difficult. The headwinds are too strong. It all knits together.”
Mr Cooper, in tabling the Bill to give effect to the 15 percent minimum corporate tax in the House of Assembly, promised it will be accompanied by incentive-based legislation designed to address long-standing concerns regarding the ease and efficiency of doing business in The Bahamas.
Referring to the consultation paper on the Domestic Minimum Top-Up Tax Bill, the deputy prime minister said: “The consultation paper foreshadowed the Government’s intention to introduce some form of incentives to reduce the cost of doing business in The Bahamas. These incentives will be laid out in a companion piece of legislation.
“These incentives would, when introduced, impact all businesses - not just businesses which qualify for the Domestic Minimum Top-Up Tax. In this respect, the Government within this year and prior to any tax becoming payable under the Domestic Minimum Top-Up Tax would introduce legislation that will lay out the framework for such incentives in a manner that will qualify under the” OECD rules.
Mr Cooper added: “In the consultation process with the Domestic Minimum Top-Up Tax, several respondents suggested that any new incentive regime be aligned with attracting new business development in key economic activity, namely headquarters, tourism, finance, technology and energy.
“And, in this regard, consideration could also be given to incentives associated with employment, capital expenditures, training, local content spend, research and development costs, the creative industries and extra- territorial turnover.”
Comments
SP 2 months ago
All of these described difficulties with doing developments and business here explains why It is no wonder that competing Caribbean resort destinations came from way behind us and surpassed the Bahamas in recent decades!
The two obvious questions that immediately pops into mind are: Why is it that both PLP and FNM are so very comfortable with all of the obvious bottlenecks making doing business and developments here dam near impossible? How does retarding development profit the PLP and FNM?
Until these questions are answered, nothing could remotely change.
Porcupine 2 months ago
This is because the politicians of both parties are the worst of the criminals in this country. They do not give a flying fluck about ease of doing business or the Bahamian people. They don't care. They are there to make as much money as possible in a 5 year period by giving out contracts to their criminal friends. They do not want an educated populace who reads the papers and can critically think because then we would see clearly how badly we are getting screwed. The politicians in this country, from the very top to the very bottom, do not care about anything other than stuffing their own pockets. Period!
DiverBelow 2 months ago
The Politically Elites, in either party, are the anchor around the neck of Bahamians treading water.. Not willing to give up their power in the interest of the country... The "Me First attitude" sparked the French Revolution; when the common folk say "enough!!" Look out. History repeats, for those who do not learn.
Porcupine 2 months ago
Outside of keeping the tourism sector going and strong and robust, as it’s our number one industry, ease of doing business and education are probably the two biggest drags on the economy. There are just not enough qualified people and incentives for workforce development, and the ease of doing business has gotten worse, not better.”
Asked to specify the problems, Mr Myers replied: “It’s everything in terms of boating regulations, in terms of taxation and getting power and getting services, getting Business Licences. It’s easy to pay taxes though. Whenever it’s been advantageous for the Government to receive revenue they’ve streamlined the hell out of it, but in terms of the ease of doing business for the private sector it’s not easy.
“The labour issues, the power issues and the Immigration issues. It typically all comes to a head around government agencies like the Department of Labour and labour laws, and not having a really clear and defined process. That’s why I say education. Education is a big part of the ease of doing business.
“If the workforce is not there, and you have to hire abroad to grow your business, the next thing you buck up into is the Department of Labour and Department of Immigration [obtaining work permits], and skilled labour shortages. That’s a significant impact on your business, both local and foreign. That all has to do with the ease of doing business. It’s not just the obvious things like permits.”
How much more really needs to be said?
TalRussell 2 months ago
@ComradeRobert Myers, -- You write well, you had something interesting to say. -- No way did you leave school after only gettin' 3 GCSEs' -- Yes?
realitycheck242 2 months ago
No body talks about how the UBP government upon the pending and immanent realization of losing the government in the 60:s decided to divide large parcels of land all over the Bahamas, especially new providence beginning from 1962, thus putting the principles of this development and other white Bahamians in the position they are in today. The land in this development was bought back then for a few thousand dollars and is now being sold for hundreds of thousands of dollars for a few square feet. Another good example is the land in Eleuthera that Disney cruise line just bought for nine million dollars (Light house point) was bought back then for a measly fifty thousand dollars. So the headache they are experiencing is just karma for the financial roadblocks they have historically placed on the black masses.
Porcupine 2 months ago
Understood. But, aren't we being led into the same "divide and conquer" trap that they want us in? I don't give a damn what color a criminal is, they all need to go. Bottom line is that the criminals have taken over this country. Any arguments here? The bankers and financiers and web shop owners in this country, no matter their color, are doing just fine, yes? If there is an honest person willing to lead in The Bahamas, no matter their color, they should be welcomed. Where are they? The criminals control every aspect of this country. How's the voice note investigation going?
realitycheck242 2 months ago
You are right, how does the saying goes "Power corrupts but absolute power corrupts absolutely" The present black crab syndrome is nothing new, it was preceded by an unending social order that sir Lynden spoke about in his famous "Bend or break speech". Today that social order has changed its face very little. It has morphed into a sophisticated form that rears its head in board rooms, Bar rooms and behind some prominent gates. There are many acting as modern-day uncle toms to facilitate their hidden agenda. Like the saying goes "Every man for himself, god for us all" but it the least amoung us who need a bigger piece of the economic pie.
Porcupine 2 months ago
Yup. Lord Acton. "Power corrupts. Absolute power corrupts absolutely." Thanks for that.
JohnQ 2 months ago
Lets just call it what it really is...............Government corruption. Pay to do business. Nothing more and nothing less.
DiverBelow 2 months ago
So True. There are many such 3rd World Countries. The My Turn corruption snake will eat it's own tail, rendering itself immobile & useless. Look at today's Venezuela, a country with tremendous natural resources, controled by few at the cost of the people.
Porcupine 2 months ago
With all due respect Diver, if the US imposed the same sanctions against The Bahamas, we would be in a much, much, much worse state than they. Much worse. The US presently has 30% of the world's people under sanctions. What for? Same reason they have killed millions and millions of innocent people around the world in our lifetimes. Just like they are funding the war in Ukraine and Israel's genocide of the Palestinians. Before we blame Venezuela politics, we should do some more research on what these sanctions really entail. At the very least, we would call them patently unChristian if we actually did our own research instead of relying on the billionaire's mainstream media.
DiverBelow 2 months ago
Review the 30yrs of government-sponsored actions before the sanctions,joke elections, private/corporate industrial takeovers, rampant corruption, & crime to name a few. Israel is repeating the precursor that Germany followed. Russia needs the breadbasket called Ukrain... dangerous, single minded ultra-right rationinzing... US next? ...Look out world.
ThisIsOurs 2 months ago
Is this the same developer who was terrorizing the residents with loud construction noises and heavy equipment back and forth up to 2AM in the morning?
I think it says something about what a person does without having to be told that what you're doing is seriously inconsiderate. Especially when their eyes are full of how much money they will make. so bright lights all night, jackhammers, 24/7 noise, I making money. #EbenezerScroogeTerritory
birdiestrachan 2 months ago
Mr Myers’s cry me a river who looses the most you or the government’ it appears you have a problem with work permits dreams are not easy to give up it appears you never had one.
birdiestrachan 2 months ago
I have no
JokeyJack 2 months ago
All good points. In fact, there are no schools anymore. There are just baby-sitting centers where so-called teachers and principals meet up with angry parents if any form of discipline or teaching is done to their "little angels." Well, hopefully those angels can fly without wings cause they ain't getting no pilot's license. As far as D-Average goes, government will not allow those who get even a 95% on their BGCSE Exam to obtain a grade of A - unless they take the so-called "extended version" of the exam - teaching for which is NOT OFFERED in most schools and learning for which is NOT ALLOWED by most parents and time for which is NOT ALLOWED by talkative "students" on their cell phones. Teachers can't teach if students are unwilling to learn. It's a two-way street.
DiverBelow 2 months ago
True Teachers, with no support and no resources (parental or governmental) are handicapped, as doctors with no medicines, can't expect worthy results.
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