The Tribune

EDITOR, The Tribune.

I entirely agree with your correspondent Brian E Plummer which you published on Monday, March 25, when he points out that developed economies deal more in manufacturing than the developing economies.

Financial independence is de facto independence, and will avoid us being the servant of developed countries.

I would go further and agree with Sir Ronald Sanders’ article in the same paper where he quotes PJ Patterson in his new book “My Political Journey”, which reports his role as a Jamaican politician and Prime Minister, where he describes how he fought for CARICOM and unity in protecting the Sovereignty of all Caribbean countries, and maintaining the rule of law.

It was sad to hear our Prime Minister on Monday night avoiding any support of economic development such as is being promoted by BAMSI and which will save the country from spending so much money on importing foreign food.

Fortunately today’s paper in the Business Section “Seize New Optimism for Bahamian Empowerment” has made a plea for local investment in local manufacturing and producing entities where the local investment profits can stay in this country and not be a drain on our currency reserves. Maybe one day we can feed ourselves.

Any new business may involve exceptional risk and must depend on two things: Competent and Experienced Direction and Access to expertise.

Financial Commitment and/or security for lenders.

The less we need foreign capital and control the better for our economy.

The current legislation and regulation encourages foreign capital by granting tax incentives, some of which, like VAT are not available to locally owned businesses.

They must support low grants of loans for small amounts specifically to purchase equipment, and an amount for a living wage and rent of premises, to get started. The requirements for the Bahamas Entrepreuneurial Venture Fund Ltd, is far too demanding, almost as bad as a bank, in requiring the documentation of an existing business to support the application.

The Small Business Development Centre has limited authority and staff to assist new business applications for grants or finance.

The Industries Encouragement Act Ch 326 enables a new manufacturing business to apply for approval and if the Company is 60 percent or more owned by Bahamians can obtain tax exemptions providing they export at least 95% of their production. Why is this? The advantage may be to receive foreign currency payments for the exports, but it hinders the circulation of local currency for locally produced goods manufactured here. And it is expensive to ship abroad involving local shipping, local customs inspections and international inspections and regulations.

All in all the better market is the local market, and the law should be changed to permit all new manufacturing businesses to receive the same tax exemptions up until their profits exceed $250,000.00 per annum at least.

And if the product is produced locally, like eggs, why allow imported eggs at cheap prices? Mr Pinder of Abaco Farms is complaining too.

We must make it easier to do business here for Bahamians.

ANTHONY HOWORTH

Nassau,

March 26, 2019