The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Village Road businesses were last night said to be awaiting “follow through” by the Government after the two sides met on Monday to discuss their proposal for roadworks relief and compensation.

Noelle Nicolls, vice-president of Four Walls Squash and Social Club, and spokesperson for the group, told Tribune Business that the businesses were “encouraged” following the meeting with Michael Halkitis, minister of economic affairs, to talk about their plight.

However, she described the encounter as “a first step” and said Village Road’s businesses and residents were still seeking “a definitive timeline” for when the ongoing roadworks - which have lasted for just over a year - will be completed.

“We are encouraged by the discussion, but it was just a first step and we are looking forward to the follow through from the Government,” Ms Nicolls told this newspaper. “Most importantly, the businesses continue to look for a definitive timeline on the road completion. We were encouraged by the conversation, and the Government’s openness to consider our proposal. Considering that it was a first step, there needs to be a follow-up.”

Some 15 companies had signed their names to a letter authored by Michael Fields, the squash club president, where it was suggested the Government provide “refurbishment grants” for residents and business owners to repair damaged premises, vehicles and other facilities impacted by the project. It also called for Bahamas Power & Light (BPL) bill discounts, and “full sponsorship” of a collaborative marketing campaign to entice consumers back to the Village Road area.

VAT credits, plus Business Licence and real property tax waivers, were also suggested as mechanisms to compensate for the damage inflicted by roadworks that have caused consumers to avoid the area “like the plague” and resulted in up to a 46 percent income losses for businesses.

It is not unheard of, though, for the Government to provide tax breaks and other concessions for businesses impacted by long-running roadworks projects. The last Christie administration did so for the New Providence Road Improvement Project that impacted multiple businesses in numerous areas of the island more than one decade ago.

Branville McCartney, whose law firm was one of the signatories to the letter, yesterday said that while he did not attend the meeting he understood “that there’s some progress being made in regards to the Government hopefully granting some concessions in terms of the businesses and residents of the Village Road community”.

He added: “I am positively hopeful that the Government will look at what was done previously on Blue Hill Road when they had the changes with the New Providence Road Improvement Project and do very similar for the persons affected by the roadworks on Village Road.

“Let me put it this way. I am confident the Government is working towards an amicable, fair and reasonable resolution for those businesses and homeowners who have been affected over the past year. I would be most disappointed if the Government were to act otherwise as opposed to being reasonable in the circumstances, most disappointed.”

The completion date for the Village Road roadworks was initially scheduled for September last year, but the deadline was then shifted to December before moving again to January. It now appears as if work may drag on into February 2023.

Mr Fields, in his letter to the Government, wrote that “an economic stimulus package” will be a vital tool in helping the area’s businesses to rebound in 2023. “The sprawling construction and protracted delays have placed a crippling strain on local businesses, which employ hundreds of Bahamians,” he wrote.

“The Government has recognised the importance of business relief in the past, and the risks of unwieldy roadworks literally putting Bahamians out of business completely. The current losses come at a time when the ordinary cost of doing business continues to rise, on top of the fact that we have all just barely emerged from the full impact of the pandemic.

“Small businesses have recently faced increases in electricity costs, property taxes, wages and inflation. When the work is complete, businesses will also incur high costs to clean up our properties, repair damages, and re-engage customers.”

Mr Fields continued: “Between the open trenches, unpaved roads, detours, strained traffic management and dust, customers are avoiding Village Road like a plague. The original target for completion, which was September 2022, and even the revised date of November, would have allowed local businesses to benefit from the holiday bump that most rely upon.

“Each missed deadline has serious implications for businesses, and there is little belief that the latest end-of-month forecast for completion will be met given the lack of clear communication and the conditions on the ground. With no clear end in sight, our reserves are depleted, our business planning efforts have become futile, and we continue to experience tremendous losses.”