Published On:Wednesday, March 17, 2010

By ALISON LOWE

Tribune Staff Reporter

alowe@tribunemedia.net

DAYS after announcing he would be closing his multi-million dollar manufacturing business in Grand Bahama, leading to the loss of 70 jobs and more than 300 others scheduled to come on-stream this year, a major investor on the island claimed yesterday that other companies are set to make similar announcements within the week.

Steve Howes, chairman of Glass Fenestration Services (GFS), complained over the weekend that the allegedly poor service reliability and high cost of the power supply provided by Grand Bahama's sole power source - The Grand Bahama Power Company - along with the alleged "intimidation and bullying" by the company of his operation led him to decide he would move his manufacturing business to a less stressful business environment.

Having allegedly seen critical manufacturing equipment "fried" by surges in the power supply on numerous occasions, to the point of putting his operation out of production for a time last year, Mr Howes said he was incensed when he was sent a cease and desist letter by the power company after he claims he was forced to use his own generators to power his operation for several months earlier this year.

He was asked by the GBPC to pay a $120,000 bill, but maintains that the GBPC owes him at least $170,000 for equipment damaged by the intermittent GBPC power supply.

Yesterday Mr Howes said things are "about to explode" in Grand Bahama economically - and not in a good way.

"There's a consortium of about 15 different companies who have all been so annoyed with the power company that from about a year ago they started looking for other places to go. They're going down like skittles. I am the first of several who are going to pull out and probably the smallest of all of them. There'll be 75 or 80 per cent unemployment by the end of the year," he predicted, declining to name the companies who are alleged to be following his lead.

Mr Howes suggested that unless something is done to end the monopoly on power that the GBPC has in the island its economy will never recover or achieve its full potential - something which Mr Howes said he personally finds "sad" given that Grand Bahamians are some of the "nicest" people and best workers he has encountered at any of his business operations, which have also been located in the UK, US and China.

If the power generation and cost were to improve, Grand Bahama would be "full of so many manufacturers you'd have to import workers."

"Power is the be all and end all of this island. Power is jobs," claimed the businessman.

The manufacturer is now "90 per cent likely" to move his operation to North Carolina with production in Grand Bahama being phased out within six months as he brings production lines in the new location into operation. The company chairman plans to take around six "key" Bahamian personnel with him to the US, leaving around 52 out of a job. A small factory employing around a dozen individuals will remain open in Grand Bahama, he said.

The GBPC has denied Mr Howe's accusations about their relationship with the company and its service and said it stands ready to "amicably resolve" the situation. It claims Mr Howes never formally submitted a detailed account of any equipment damaged by the company's power surges - a suggestion which Mr Howes reacted angrily to yesterday, claiming that the company told GFS Managing Director Phil Poppell that it was "not responsible" for such damage under its terms and conditions.

Yesterday Minister of State for Finance Zhivargo Laing said the government was not notified of Mr Howe's decision except via the letter "to the people of Grand Bahama" announcing it which appeared on the Internet on Saturday.

Asked to comment on Mr Howes' assertion about the GBPC and its effect on the Grand Bahama economy, Mr Laing suggested that Mr Howes' claim that the closure of his business was due primarily to problems with the power company "is one that has to be assessed once all the facts are known".

Another source yesterday informed The Tribune that Mr Howes only had 37 of his staff registered with the National Insurance Board and was in arrears on payments for those staff dating back six months.

Mr Laing said: "The Government is trying to get as much information as possible on the situation. It's very early so we're trying to do a proper assessment of what the issue is. Then we will see if there's anything that can be done."

"Whatever legitimate issues that exist with the power company will have to be addressed," he added.

"The government is interested in encouraging new business in Grand Bahama, encouraging the continuation of business, domestic and international, in Grand Bahama. We don't want any business to have to close down, particularly given the circumstances in Grand Bahama and what's happening in the country generally. (However) I also know the power company has views on what has happened with Fenestration," he said.

Mr Laing said the government was not aware of any other companies which are planning to pull out of Grand Bahama.