Politics dominated 2011 in the Caribbean
For political historians, 2011 has provided lots of fresh fodder.
Never before in the history of the region have there been general elections in two Caribbean countries on the same date; coupled with a state of emergency in another; allegations of assassinations against two prime ministers; the surprise resignation of a prime minister, not to mention the democratic change of government in Haiti, all within a 12-month period.
In addition, Barbados' Prime Minister Freundel Stuart warned leading members in his administration that any attempt to derail his government would have "certain consequences".
"If I understand history at all, if a coup is attempted and it succeeds, the person against whom the coup was aimed usually pays for it with his neck. If the coup fails, the plotters and those who were trying to execute it pay for it with their necks," he said.
His Finance Minister Chris Sinckler acknowledged that he and 10 of his colleagues were seeking an "urgent audience" with Stuart because some members felt that the Democratic Labour Party's level of public engagement on issues affecting the country was found wanting.
"I am hoping that by putting this on the record that those who feel that I am after some office and I spend all of my waking hours thinking about how to unseat this person or the other, or cause confusion that would lead to that, I really hope that they would stand down," he added.
alleged plot
At the start of the year, St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves stunned parliament with his disclosure of an alleged assassination plot against him.
"Cocaine traffickers and money launderers are conspiring actively with others to kill the prime minister, and on the public airwaves people are being exhorted by some to use any means necessary to remove a democratically elected government," he added. This statement followed public pronouncements by Opposition Leader Arnhim Eustace that the government would fall by the end of 2011.
Nine months later, Gonsalves' counterpart in Trinidad and Tobago, Kamla Persad-Bissessar, caused an even bigger stir when she announced that the police had uncovered a plot to kill her and senior government ministers.
"I am advised by the law-enforcement authorities that they have, through their intelligence resources, uncovered an assassination plot against members of my government and myself," she told the nation, adding that the assassinations were as a direct result of the "successful" 105-day state of emergency that had severely disrupted the activities of the criminals.
But in the end, despite the detention of 17 people, police were unable to lay any charge and the opposition termed the "assassination plot" as nothing more than "an exaggerated political stunt" by the government.
Whether he was forced out of office or not, Bruce Golding (of the Jamaica Labour Party) surprised Jamaicans with his announcement that he was stepping down as head of the government in October, less than five years after taking the oath of office as prime minister.
"The challenges of the last four years have taken their toll and it was appropriate now to make way for new leadership to continue the programmes of economic recovery and transformation while mobilising the party for victory in the next general election," Golding said in a farewell statement.
His successor, Andrew Holness, 39, became the youngest-ever prime minister since political independence in 1962, but also now has unenvious record of being booted out of office just after two months.
Holness gambled and called a general election on December 29, but the voters decided that Portia Simpson Miller, the first-ever woman prime minister they sent packing in 2007, was a better choice to lead the country. They gave her People's National Party an overwhelming 41-22 margin of victory.
Simpson Miller, affectionally referred to as 'Sista P' and 'Comrade Leader', faces deep problems as she takes over the Government, with debt running at approximately 130 per cent of the gross domestic product and unemployment at more than 12 per cent.
The new Government has already said it will be seeking to renegotiate the multibillion-dollar standby agreement with the International Monetary Fund.
Jamaica's Holness to make tough Senate decisions
OPPOSITION LEADER Andrew Holness will today announce the names of the eight persons who will represent the Jamaica Labour Party (JLP) as senators.
Holness last Friday made it clear that he did not subscribe to the view that rejected politicians should not be imposed on the people by way of the Senate.
The Gleaner understands that Holness plans to announce the appointment of Deputy Leader Dr Christopher Tufton, Deputy Chairman Robert Montague, Marlene Malahoo Forte, Danville Walker, Dr Saphire Longmore and Paula Kerr-Jarrett as senators.
All six were rejected by the voters on December 29.
Kamina Johnson Smith, who joined the Senate midway through the last term, is said to be favoured for reappointment.
If Holness goes the route of appointing the six persons who lost elections as well as Johnson Smith, it could mean trouble for party functionaries such as Aundré Franklin, Ian Murray and Warren Newby.
Franklin is the general secretary of the JLP and Newby is a deputy general secretary of the party, likewise Murray who was in the last Senate.
Watchdog of democracy
"We want to have a strong Senate, first and foremost. Now that the Government has a two-thirds majority in Parliament, you would have heard me say the Opposition must be the watchdog of our democracy," Holness said.
He added: "The Senate that will emerge on Monday, when we announce the opposition senators, will be one that is strong, one that is faithful to the principles of our democracy, and one that represents the future of the Jamaica Labour Party."
Holness has the task of determining whether to reappoint Dorothy Lightbourne, Tom Tavares-Finson, Hyacinth Bennett and Dennis Meadows. He will have to consider whether to promote Marlon Morgan, Robert Miller or Delano Seiveright.
St Vincent PM to speak at Peaceful Caribbean conference
St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves will be one of the featured speakers at the “Peaceful Caribbean Conference 2012: Focus on Solutions” to be held in Barbados on April 20, 2012.
The conference is being put on by the Peaceful Caribbean Initiative, in conjunction with Caribbean News Now, and according to the organisers is an effort to highlight the increasing problem of crime in the Caribbean and to focus on enabling the region to regain its rightful place in the world as a peaceful and stable place.
Conference Director Rebecca Theodore said, “Whilst each country and territory in the region has its own unique set of complex problems, we believe that much more can be achieved by sharing what works and what doesn’t in this respect, rather than trying to achieve results in isolation.”
The conference will feature top personalities and experts from the Caribbean and North America, as well as editors and contributors from Caribbean News Now. There will be key addresses and panel discussions on the major issues confronting peace and stability in the Caribbean. It promises to be a hugely important event for anyone interested in the future of the Caribbean as a place to live and visit.
During his recent Budget Address in the St Vincent and the Grenadines parliament, Gonsalves, who also holds the portfolio as Minister of National Security, remarked that the nature of man results in a propensity to break the law and a crime-free society will exist only in Heaven.
“However, in this earthly city we must strive to curtail crime and reduce it to an acceptable minimum, consistent with the highest possible level of civilised living,” he added.
“When discussing this subject we must present facts; seek the truth from the facts; analyse the issues dispassionately and rationally; make practical and effective proposals to tackle crime; and then let us all work together on fighting crime,” Gonsalves continued.
After hearing Gonsalves’ remarks, Theodore said she was confident that his clarion call was not only for the government and people of St Vincent and the Grenadines, but that it was for the entire region, and every stakeholder who is passionate about a Peaceful Caribbean.
She added that she looks forward to Gonsalves’ contributions in not only making the Peaceful Caribbean Conference a success, but in also paving the way forward for the discussion of crime outside the partisan political debate.
The Peaceful Caribbean Initiative is the brainchild of Dominican-born Theodore, who has been on the frontlines of the international political scene for over a decade, writing and speaking in print, online and broadcast media within the Caribbean, the US and Canada on national security and political issues. The vision and mission of the Peaceful Caribbean Initiative is to have the Caribbean regain its rightful place in the world and to re-establish the perceptions and realities of the region as a peaceful and stable place for residents and visitors alike.
For more information and to register for the Conference, visit www.peacefulcaribbean.com.
Caribbean News Now
Anguilla set to attend 30th Anniversary of The CHTA Marketplace in The Bahamas
The Caribbean Hotel and Tourism Association (CHTA) is celebrating the 30th Anniversary of Caribbean Marketplace – the industry event that has revolutionized the way business is conducted among industry stakeholders. CHTA anticipates that the 2012 edition of the event will continue the successes achieved at Caribbean Marketplace 2011 which saw the third largest attendance over the past decade as well as an increase in the number of crucial buyer companies by twenty percent and buyer delegates by seventeen percent.
“Over the course of the past thirty years, the packaging of Caribbean vacations has changed because of the role Caribbean Marketplace has played in shaping the way business is conducted between tour operators, hoteliers, attractions and restaurants,” said Mr. Josef Forstmayr, CHTA President. “In 2011 , we saw a twenty-two percent increase in wholesaler buyer companies in attendance at Caribbean Marketplace which is a clear indication that there is a tremendous interest in Caribbean vacations across the globe.”
Caribbean Marketplace is the premier business-to-business marketing event for the Caribbean Hotel and Tourism industry which follows the “All Tourism, All Caribbean, All Business” mantra throughout the entire program. The format of the event is two days of pre-scheduled business appointments that allow the buyers and suppliers to meet face-to-face in discussion regarding existing contracts, as well as develop packages and contracts for future business
Caribbean Marketplace 2012 will be held at the Atlantis Paradise Island, January 22nd- 24th and presented by CHTA, the Bahamas Ministry of Tourism, the Bahamas Hotel Association, the Nassau/ Paradise Island Promotion Board, MasterCard and Virgin Holidays. Caribbean Marketplace is the requisite business-to-business marketing event for the Caribbean hotel and tourism industry. At Caribbean Marketplace hoteliers meet, network, negotiate and conduct business with buyers from around the world.
A delegation of (11) eleven accommodation members, industry partners, and Government officials will travel along side Parliamentary Secretary with responsibility for tourism, Mr. Haydn Hughes, and Mrs. Mrs. Sherille Hughes, 3rd, Vice President and President of the Anguilla Hotel and Tourism Association. Mrs. Hughes and Mrs. Gilda Gumbs Samuel, Executive Director of the Anguilla Hotel and Tourism Association (AHTA) will leave the island earlier to attend executive committee meetings.
The following members of the Anguilla Hotel and Tourism Association, Anguilla Tourism Board, overseas hotel representatives, and Government Officials will attend the conference.
Mexico pledges $5 million to build markets in Haiti
The press office of Haitian President Michel Martelly says Mexico is promising to give the Caribbean nation $5 million to build several markets.
The agreement was made in Guatemala, where the leader attended Saturday's presidential inauguration of Otto Perez Molina.
A powerful earthquake two years ago displaced 1.5 million people in Haiti and officials say 550,000 people are still without shelter.
Donors pledged $4.5 billion toward reconstruction efforts but only half of that has been spent.
The Martelly administration announced Mexico's contribution in a press release yesterday.
AP
Costa Concordia sinking could cost Carnival $95m
The sinking of the Costa Concordia could cost parent firm Carnival up to $95m (£62m; 75m euro), the firm has said in a statement.
Carnival shares fell 18% in early trading after it said it expected the loss of earnings from the capsizing to be between $85m and $95m.
The ship ran aground on Friday night off Italy's coast, killing six people.
Italian, German, French and British nationals were among the 3,200 passengers on board.
"The vessel is expected to be out of service for the remainder of our current fiscal year if not longer," it said in a statement to the London Stock Exchange.
"For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85-$95m or $0.11-$0.12 per share."
Analysts believe the capsizing could affect holiday plans for potential cruise customers.
Shore Capital analyst Greg Johnson said: "We would highlight the potential impact on booking yields in an environment where booking patterns remain subdued."
Carnival said it had insurance coverage for damage to the vessel with an excess of $30m.
It added it "anticipates other costs to the business that are not possible to determine at this time".
'Deeply saddened'
Micky Arison, chairman and chief executive of Carnival Corporation, said: "At this time, our priority is the safety of our passengers and crew.
"We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives."
Carnival Corporation is the world's largest cruise ship operator. It owns 11 brands, including P&O, Cunard and Princess Cruises.
It is a dual-listed company, with headquarters in Southampton in the UK and Miami in the US.
Carnival plc, the British side of the business, is concerned with UK operations, but has responsibility for Costa Cruises, Carnival Cruises and Holland America Line.
European stocks shrug off downgrade
European stocks had a subdued reaction Monday to Standard & Poor's downgrade of nine euro-zone governments.
European stocks wavered between gains and losses in morning trading. Britain's FTSE 100 (UKX) slid 0.2%, the DAX (DAX) in Germany edged higher by 0.1% and France's CAC 40 (CAC40) shed 0.3%.
S&P said Friday that it had downgraded the credit ratings of nine euro-area governments, including previously AAA-rated France and Austria.
S&P also lowered its rating for Italy, Spain, Portugal and Cyprus by two notches. The move means Italian bonds are now rated BBB+, dangerously close to the junk bond level that could make it even harder for the government to raise money.
France and Austria both had their top-tier credit rating lowered by one notch to AA+, the credit ratings agency said. But Germany, Finland, the Netherlands and Luxembourg all maintained their AAA ratings.
S&P cut the ratings of Malta, Slovakia and Slovenia by one notch.
The agency said the downgrades reflect a combination of economic and financial issues, as well as "an open and prolonged dispute among European policymakers over the proper approach to address challenges."
Europe can't catch a break
Specifically, the agency pointed to weakening economies, tightening credit conditions across the eurozone, rising interest rates for a growing number of nations, and the "deleveraging" of both governments and households.
As the downgrade chatter circulated, stocks sold off in Europe and the United States on Friday. The S&P 500 (SPX) lost 0.5%, the Dow industrials (INDU) dropped 0.4%, and Nasdaq Composite (COMP) fell 0.5%.
U.S. markets are closed Monday for Martin Luther King, Jr. Day.
Last August, the United States had its AAA rating cut one notch by S&P amid a political impasse over the nation's debt ceiling.
The U.S. downgrade initially sparked a sell-off in the stock market. But the reaction in the bond market was muted, with yields on U.S. government bonds holding steady at low levels.
Asian markets ended lower Monday. The Shanghai Composite (SHCOMP) dropped 1.7%, the Hang Seng (HSI) in Hong Kong shed 1% and Japan's Nikkei (N225) lost 1.4%
Digicel lashes out at LIME
THE COUNTRY'S two cellular service providers have been engaging in a verbal tussle following revelations last week that former Prime Minister Andrew Holness reversed a precondition of the Digicel-Claro merger.
"We believe that Mr Holness' removal of this critical condition, without the passing of the emergency legislation to safeguard the industry, has grave implications for the future of Jamaica's telecommunications industry," LIME said in a statement on Saturday.
Twenty-four hours later, Digicel went on the offensive saying LIME must stop its "outrageous public bashing of government officials and focus instead on fixing its own lacklustre business performance".
Digicel CEO Mark Linehan said, "LIME should not be looking for the Government to fix its problems but would be better served spending its time focusing on fixing its internal problems rather than gnashing its teeth and complaining to all and sundry about the perceived injustices meted out to it."
Free ride
Late last year, Holness changed the provision requiring Digicel to operate two separate networks as part of its takeover of Claro.
LIME said the decision grants Digicel "a free ride considering that virtually the same token and wholly inadequate rate change already condemned as 'unimpressive' was subsequently accepted by Mr Holness and, in our opinion, this is tantamount to a betrayal of the Jamaican consumers who are desperately seeking relief in this harsh economic climate".
LIME has called for the new Government to immediately implement the emergency legislation and overhaul the regulatory framework of the telecommunications industry.
"We are asking the Government to take this action - with extreme alacrity - in the interest of Jamaican consumers as well as all current and any future telecoms service providers," the company said.
Consumers benefit
In the meantime, Digicel yesterday said the deal was in the interest of consumers. It also said Holness followed the letter of the law in his approval of the deal and lifting of prior conditions.
"Digicel took great pains to ensure that its acquisition of Claro Jamaica would benefit consumers across Jamaica by proactively and voluntarily offering to reduce its cross-network rates for both prepaid and post-paid customers by J$3.50 per minute peak rate reduction and a J$2 per minute off peak rate reduction on calls to the other network," Digicel said.
"This represents an up to 20 per cent reduction on the previous rates. Digicel further voluntarily committed to investing a further US$30 million in the roll-out of islandwide 4G Mobile - on top of its existing investment of US$1 billion in Jamaica to date - to relinquishing spectrum, and to bringing Internet service to schools and post offices in remote areas of Jamaica outside the remit of the Universal Access Fund," it added.
Employers fear work permits change could bring job losses
A new work permits policy floated by the Economy Minister makes little economic sense and could lead to job losses say employers.
Patrice Minors, Economy, Trade and Industry Minister, announced on Wednesday that the Government is looking at extending the categories of employment that are closed to work permits.
She said a work permit moratorium imposed last February for certain jobs had resulted in “hundreds” of jobs opening up for Bermudians.
But the Minister said that she would be consulting industry on further restrictions. She is looking at closing off work permits to jobs such as masons, carpenters, electricians and plumbers, while adding jobs such as waiters, servers, landscapers, secretaries and caregivers to a “restricted” list “where employers will have to first demonstrate that they have hired a certain percentage of Bermudians including trainees before a work permit is considered.”
“Limiting work permits means less job creation overall,” said Peter Everson who heads up the Economic Committee of the Chamber of Commerce.
He noted that Bermuda’s overall employment income has dropped 4.6 percent in the third quarter, the largest drop during this time period since prior to 2007, and said part of the reason for the decrease is that the number of people living in Bermuda has decreased.
“In the good times from 1990 to 2006 the Chamber’s analysis showed that for every five work permits that were issued, one job was created,” Mr Everson said.
“As work permits are being cancelled, it will not only impact the number of people here spending money on the Island but also impact the number of jobs created.”
Mr Everson added that it would be better to increase the total number of jobs rather than “reallocate” them.
“Every time we lose a work permit holder, there is one less person paying rent, and that’s going to be one of the weak points of the economy it will become increasingly hard for Bermudians to pay their mortgage payment.”
Replacing experienced people with people that need to be trained and get up to speed, which may take several months to a year, is “less efficient and less effective, making the economy less competitive rather than more competitive.”
That’s a point that resonates with the Bermuda Employers Council.
“We are particularly interested to discuss our concerns that a new policy may evolve requiring the hiring of ‘any Bermudian that is able and willing to work, whether trained or untrained, before work permits are issued….(and requiring) … a certain percentage of Bermudians including trainees before a work permit is issued,’” said Keith Jensen, BEC president.
Mr Jensen says that the policy would impose an unsustainable cost burden to small businesses, causing some to close or reduce services and staff.
“And, if unacceptable standards of service take hold, therefore, negatively affecting clients and revenue.”
BEC is urging Government to make labour market policy “within a framework of the timely release of GDP statistics and forecasts.”
“Plans to provide timely statistics from the Ministry together with a frequent review of the categories to be given more scrutiny through consultation can only improve the effectiveness of policies and improve the working relationships of the tripartite social partners labour, employers and Government,” Mr Jensen continued.
He said, given the economy, work permit restrictions were expected and that employers were supportive of Government’s retraining efforts.
“From a practical point of view, it is less costly to hire a Bermudian than to bring in a person from abroad.”
Restaurateur Phillip Barnett highlighted a different concern. “We certainly believe we are doing everything in our power to hire Bermudians into the hospitality industry.”
But he said that the hospitality industry is “no different” from any other. “The fact of the matter is we want people to want to work in our industry and do a good job,” Mr Barnett said.
“Many Bermudians consider it beneath them. And that’s demeaning to any other Bermudian in the industry. It’s also demeaning to try to force people to come into the industry because they cannot find work. We’re not interested in having anybody working with us who doesn’t have the same pride and understand the nobility of the position.”
States look to hike tax on millionaires
As the "tax the rich" debate rages in Washington D.C., some states are turning to their wealthiest residents to bring in much-needed revenue.
The governors of the two largest Democratic states want rich folks to help close budget gaps. And Democratic lawmakers elsewhere are preparing to do battle with Republican leaders to blunt budget cuts by instituting a millionaire tax.
This marks a shift from last year, when state leaders largely shied away from raising taxes in general. Several cash-strapped states, including Maryland, New Jersey and Oregon, let their millionaire taxes lapse.
But spending cuts alone aren't getting the job done.
"As the effects of the recession linger, states are realizing they can't [balance their budgets] by cutting education, transportation and other investments that create jobs," said Jon Shure, director of state fiscal studies for the left-leaning Center on Budget and Policy Priorities.
Election 2012: How rich are these guys?
After refusing to renew New York's millionaire tax, Governor Andrew Cuomo ended up hiking the levy on the rich anyway. The increased revenue will close about half of the state's $3.5 billion budget gap for the coming fiscal year.
The Empire State had instituted a surcharge in 2009 that raised the top rate to 8.97% for earnings above $500,000. It was scheduled to fall to 6.85% this year.
Instead, Cuomo created new tax brackets that lower the tax rates for those earning less than $300,000. But income above $2 million will be taxed at a new top bracket of 8.82%, nearly two percentage points higher than had been expected. It expires at the end of 2014.
"Whether a person made $20,000 or $20 million, they paid the same rate. It was just wrong -- because a flat tax is not a fair tax," said Cuomo in his State of the State speech earlier this month. "Our principle is simple: the more you make, the higher rate you pay. Today, the middle class is paying the lowest rate in 58 years."
On the other side of the nation, California Governor Jerry Brown built his budget assuming that voters approve a $6.9 billion tax package on the November ballot. He's planning to sell his plan to Golden State residents at his State of the State address on Wednesday.
If the ballot measure passes, three new tax brackets would be created. Single taxpayers would fork over an additional 1 percentage point on earnings over $250,000, 1.5 percentage points on income over $300,000 and 2 percentage points on earnings over $500,000. The higher rates would be in effect for the 2013 through 2016 tax years.
In addition, Brown wants to raise the sales tax by half a percentage point. The added revenues would go to fund schools and public safety, which would otherwise face $5.4 billion in cuts, he said.
In New Jersey, voters favor instituting a millionaire tax by a 2 to 1 margin, according to a Quinnipiac University Poll conducted late last year, marking an all-time high.
Democratic lawmakers, who control the state legislature, are hoping to convince Governor Chris Christie, a Republican, to reinstate a surcharge on the wealthiest residents. He had been staunchly opposed to a similar effort last year, instead instituting deep cuts in spending.
"Despite all the talk about shared sacrifice, the wealthiest residents in our state are the ones who are being asked to sacrifice the least," said state Senator Barbara Buono, who until recently served as majority leader.
But conservatives argue that while raising taxes on the wealthy might bring in more money in the short-term, it could hurt any state's economy in the long run.
"We're skeptical of the idea that high rates do anything but scare people out of the state and limit economic growth," said Joe Henchman, vice president for state projects at The Tax Foundation.