By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
OPPOSITION Shadow Minister for Finance Peter Turnquest believes the sale of the British Colonial Hilton and adjoining property to a state-owned Chinese company has concerning labour and foreign policy implications for the Bahamas.
Mr Turnquest was speaking to The Tribune two days after the government announced on Friday that it has approved the sale of the Hilton to the China State Construction Engineering Corporation (CSCEC).
When contacted for comment yesterday, FNM chairman Darron Cash also expressed concern about what will be the CSCEC’s key involvement in the redevelopment of downtown Nassau.
Mr Cash had harsh criticism for what he sees as the “Christie administration’s way of outsourcing every aspect of national development to foreign nationals.”
The CSCEC is currently building the $3.5 billion Baha Mar resort and has a $150m equity stake in that project.
Mr Turnquest said he has no issues with the Hilton being owned by a foreign company, adding that Foreign Direct Investment (FDI) is necessary to develop this country.
“However,” he said, “I have a problem with such a key area of our economy being concentrated in the hands of any one particular entity. The China State Construction company is involved in the Baha Mar project and now, if the reports are correct, they are spearheading the downtown redevelopment.
“This is a China state-owned entity, which raises the issue from one of foreign direct investment to one of foreign policy and the implications that may arise from that. We appreciate their assistance over the years, whether technical or financial, but we have to be careful and try to diversity the types of investors that we attract so we don’t have a situation where one entity could dictate public policy.”
While the CSCEC has announced its intention to create 500 permanent jobs downtown, Mr Turnquest expressed concern about the impact the sale of the Hilton will have on labour relations in the country.
“There was tremendous uproar which the present government took advantage of with respect to Chinese labourers assisting to build Baha Mar,” he said. “What is their intention with respect to the work intended to enhance this product? Will Bahamians find themselves in a disadvantageous position again? This goes beyond just foreign investment and into how it will complicate labour relations and affect Bahamian workforce, certainly in the construction stage at least. “
Mr Turnquest also questioned the sustainability of the CSCEC’s plans to develop the long vacant, adjoining property to the west of the Hilton with a hotel and condominium units.
He said: “We are in a period of change with respect to the tourism industry. We have tremendous competition from the USA and the Caribbean. Building hotel rooms is a wonderful thing but you have to find the airlift and the markets.
“Baha Mar has put forward that they will be attracting gamblers. I believe that market is tremendously fickle at this point. They were talking about attracting the Chinese, as it is, and there is a tremendous market there, but access to the Bahamas from China and the Far East is not easy. In this period of global travel we have to be concerned that we won’t produce numbers that will be unsustainable.
“Where will the visitors come from? Will they be one-off or will it be sustainable? We have to be concerned about whether government subsidies and the rest of it will be necessary to keep these hotels afloat. I’m of the belief that hotels should be taking care of themselves without governments having to promote these properties. So the issue of sustainability has to be a serious concern. The affect that this additional inventory will leave on room rates and other hotels needs to be considered.”
For his part, Mr Cash criticised Prime Minister Perry Christie for not pushing harder to ensure Bahamians became owners of the Hilton.
He said: “(One) noteworthy comment from the announcement (of the sale on Friday) was the declaration that CSCEC has agreed to join in a partnership with the government and other stakeholders along Bay Street to implement a plan for its redevelopment … No one knows quite what this means … (but) we do already know what Prime Minister Christie’s modus operandi is.
“He demonstrates little confidence in his own people. It seems to me that if Prime Minister Christie has his way every aspect of national development will be outsourced to foreign nationals. Nothing is sacred. This Prime Minister came to office in part by exploiting Bahamians’ anger over the sale of majority interests in BTC to a foreign company. Yet as soon as (he became) Prime Minister he was pitching the sale of wireless/cellular licences to his favourite foreign company.
“The idea of ‘Bahamians first’ was dead on Mr Christie’s arrival to office. The idea of engaging the Chinese to lead the redevelopment of downtown is as offensive today as the use of foreign students to tell him what to do was the last time this idea came to him when he was Prime Minister between 2002 and 2007.”
Mr Cash said Mr Christie, focused on his legacy, “is resorting now to microwave fixes designed to force ripe matters that should start with the people and take time to develop and become home grown.
“This ‘microwave’ approach is the same approach he is using to having an external agency impose a national development plan on Bahamians, and it will not work. Bahamians should own and lead every major aspect of the development and redevelopment of downtown. This should not be outsourced to any foreign national or entity.”
Yesterday, PLP Chairman Bradley Roberts dismissed criticism of the sale of the Hilton to the Chinese company, saying that he is “surprised by the people and their ignorance.”
“Those people came up with the best deal and the government endorsed it,” he said.
Comments
Well_mudda_take_sic 9 years, 5 months ago
Only the silly Tribune is concerned about this matter!
John 9 years, 5 months ago
And what is directly across from the Sheraton and even more directly across from the vacant lot on which they propose to build another hotel
DreamerX 9 years, 5 months ago
Seems like a fair criticism if you minus the political grand standing. Overall a good caution in the diversification of FDI. The prospect of FDI turned into political leverage by State owned companies has been an issue globally. Some regulations requiring years of holding money in local banks before remittance and such. Not sure how that worked for Russia but I think the conversation should be had.
TalRussell 9 years, 5 months ago
Comrades think about it. One one side street you have Chinese Hilton Hotel flying red flag and on other side you have the Embassy of United States of America, flying stars and stripes? Only in Bahamaland you say?
John 9 years, 5 months ago
Not only is China purchasing property and investing heavily in the Bahamas and all around the world but China has been hording gold for the past several years. They expect that when the US dollar collapses the price of gold will blow up from $2,000 an ounce to $16,000 an ounce! (Sixteen Thousand Dollars). Meanwhile hoarders have ravished the Bahamas and the Caribbean of all their scrap gold paying only around $100 an ounce for it. Even persons who did not want to part with their gold had it lifted in robberies or home invasions. Valuable jewelry and heirlooms were hoarded for 1/16 of its value. Do you know why the Malaysian jet liner disappeared?
Well_mudda_take_sic 9 years, 5 months ago
The Tribune website is now getting on average a record low number of hits per day; therefore no longer worth the time of posting comments on its articles!
TalRussell 9 years, 5 months ago
So, Comrade why why not move on to post elsewhere?
John 9 years, 5 months ago
But what he is saying is true about the number of hits. Sometimes the entire weekend goes by and there are less than 5 blogs. Is this is because persons have lost interest in the news of have some moved to the Guardian that has several talk shows supporting its news stories.
Libraboy 9 years, 5 months ago
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Emac 9 years, 5 months ago
Or could it be that comrade is vex because one of his/her commentary was removed due to certain violations? Pointing out a downward spiral in low number of hits is one thing. Doing it out of spite is childish. Besides, only the Tribune has the data that can determine the number of hits rendered daily by its readers. One cannot judge the popularity of a site by the number of postings by its visitors. After all, The Guardian has 0 comments from its visitors. This does not mean that people are not visiting the Guardian site in large numbers.
ThisIsOurs 9 years, 5 months ago
Or could it be that a)nothing much is posted the weekend and b) that's when most people do their jungle runs? Really, everything is not a conspiracy...ease up on the black helicopters
henny 9 years, 5 months ago
Exactly. I skip the weekend because there is nothing to see.
SP 9 years, 5 months ago
OPPOSITION Shadow Minister for Finance Peter Turnquest has joined FNM chairman Darron Cash in talking bullshyt just to have something to say!
Firstly, NOBODY with sense invest in anything without firstly carrying out a feasibility study.
Secondly, the sum total of the Hilton hotel purchase, expansion plans and Bay Street redevelopment combined are insignificant, very small developments to China State Construction Engineering Corporation (CSCEC).
Thirdly, where is a statement from the FNM on the illegal Haitian migration problem and the Haitian-Colombian necktie threat to the nation last week?
Why has the FNM NEVER uttered the words Haitian problem?
Inquiring minds want to know!
TalRussell 9 years, 5 months ago
Comrades this is not just about foreigner ownership of the once grand lady of Bahamaland's hotels. The Colonial is rooted in Bahamaland's history with it's site going back 1800's. Since it's construction 1901 the Colonial has had foreigner owners which have included the American Henry M. Flagler, Canadian Sir Harry Oakes later be murdered under mysterious circumstances in 1943. In 1997 was purchased by another Canadian, an ex priest's company RHK, who had his own mysterious past. It was also rebuilt and owned by Bahamaland's government around 1923. To this day it is considered the prime of prime location hotel properties in Bahamaland. Yes, we in Bahamaland have come a long way since when i was younger the grand lady would only remain open during the winter months - close for rest year. Comrades we must not only be thankful for our tourism progress but we must not allow a foreigner nation under guise of a corporation to own Bahamaland.
John 9 years, 5 months ago
Don't blame the Chinese for being smart and investing around the globe. Blame us (Bahamians) for not taking advantage of opportunities and investing in our own people. Diversification ma boy!
TheMadHatter 9 years, 5 months ago
Like the jokey fellow on the radio who used to do Hubert Ingraham's voice so well - "We ga sell all the islands in the Bahamas, except Rum Cay - ha ha ha".
The Church needs to stop forcing people to have child slaves to grow up and work for the Chinese. Sexual education and pregnancy prevention methods needs to be more widely available in this country.
If people would pay attention to this instead of them pasta sauce - we would be better off.
TheMadHatter
ThisIsOurs 9 years, 5 months ago
I agree our young people are hyper sexual. It's screwing up their brains. Information that they don't know how to use properly. It seems today that the attitude is all the "cool" schoolkids are having sex. And who is there to watch them anyway? Many of them come from single family homes and Mummy at work,the cycle continues.
Maybe they need to bring some teenage mothers and fathers to speak in schools to tell these kids how their life changed after they had the child. Children are blessings but they're not easy. You can't continue to do teenage things, go to parties, talk all night on Facebook, go to the movies, hang out, buy clothes and, be a responsible parent. And don't talk about when the young mother stressing you for money for the diapers or asking you to find a job or when the young father who told you he loved you gets a new girlfriend and disappears....might have an effect...
TheMadHatter 9 years, 5 months ago
Nice points - but just telling them about all the negative things that will happen in their lives is not enough. You have to tell them HOW (and there are several options) to prevent pregnancy. Just ONE half hour seminar in 9th grade is not enough - and many don't even get that, esp. if they are from certain religious based schools.
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