Women CEOs Say Debt Uncertainty and Regulation Hurt Job Growth
Women business leaders meeting with Republican lawmakers said tax burdens, duplicative government rules, an unskilled workforce and congressional deadlock on the deficit are hurting job creation and the economy.
“Like everyone else, we need certainty when we get up in the morning and go into the office and worry about how many people we are going to hire,” said Lisa Hook, chief executive officer of Neustar Inc., a provider of telephone and Internet directories based in Sterling, Virginia, at a panel discussion today in Washington.
“If we don’t have a budget resolution, if we don’t have a debt-ceiling resolution, that nevertheless impacts our stock,” Hook said at the roundtable discussion with women CEOs and female Republican House members on the economy and jobs.
She termed the impasse a “bipartisan problem.”
Concerns expressed included new regulations on banks that make it more difficult to access credit, a complex tax code and a need to invest more in training students in science, engineering, technology and math.
Alison Brown, CEO of Navsys Corp., a closely held company based in Colorado Springs, Colorado, that develops global positioning system technology, said her company is having more trouble getting access to working capital.
“As a result of the Wall Street financial crisis, restrictions are being put on banks that are causing Main Street to suffer,” she said.
Product Development
Brown said that before the crisis she could invest in product development with “reasonable certainty” that she could get access to a line of credit to hire employees and purchase materials. “This is no longer the case, and this is a serious problem for any small business planning growth,” she said.
Uncertainly over budget cuts at the Department of Defense is also delaying contracts for her company, Brown said. “Fiscal 2012 is looking even grimmer.”
Brown, Hook and others called for a greater effort and investment to encourage students to study science and math because highly skilled jobs are going unfilled.
Catherine Heigel, president of Duke Energy South Carolina, said the company’s priorities include passage of a tax holiday for offshore profits brought back to the U.S.
“Duke Energy has over $1.2 billion in foreign earnings that currently sit offshore that we would very much like to bring back,” she said. “We would pay an effective tax rate of more than 50 percent on that money if we brought it back.”
Duke Energy Corp., based in Charlotte, North Carolina, is buying Progress Energy Inc. to become the largest U.S. utility owner.
Multinational companies including Microsoft Corp. and Oracle Corp. are urging Congress to make passing a measure to allow a tax break on their offshore profits a greater priority than a tax-code overhaul.
The panel was moderated by Representative Cathy McMorris Rodgers, a Washington Republican and vice chair of the House Republican Conference.
Bloomberg
Caribbean blasts UK for increased travel tax
THE CARIBBEAN has strongly criticised the United Kingdom government, accusing it of showing complete disregard for the region's future economic prosperity and the role of tourism in its development.
In a press release on Tuesday, both the Caribbean Tourism Organisation and the Caribbean Hotel and Tourist Association (CHTA) condemned the UK Treasury's decision to increase the controversial Air Passenger Duty (APD) by eight per cent as of April 2012.
"The decision is in total contrast to the stated policy of the UK's desire to improve its relations with the independent Caribbean and Britain's overseas territories in the Caribbean," said the CHTA.
CTO's chairman, Ricky Skerritt, described the move as a slap in the face for all Caribbean people. "It dismisses all of the research and information CTO has provided to the British government over the past three years, and it contradicts the message sent by the UK chancellor, George Osborne MP, in March 2011, when he cited the discrepancy between the USA and Caribbean APD rates as one of the reasons for holding a consultation on reform of UK APD."
He said the Caribbean is the most tourism-dependent region of the world and the British government's decision totally ignores the negative effect that APD is having on the region's economies and its business partners in the UK travel industry.
Blow for customers
The UK, in a 26-page document published on Tuesday, said APD rates to Caribbean destinations will continue to be considerably higher than those to some competitor destinations, for instance Hawaii. Furthermore, the fact that premium economy passengers will continue to be charged the same APD as first-class passengers is a blow for those customers wanting to upgrade, the CTO said.
As the news gained traction throughout the region, Jamaica's tourism minister, Edmund Bartlett, added his voice to the debate, stating that the announcement "is as unbelievable as it is unacceptable".
Lamenting the UK's course of action, Bartlett said the choice to maintain the current regime despite strong lobby efforts was very disturbing.
"We are saddened that the Caribbean's proposal that the band arrangement be adjusted to establish only two bands for long and short haul, respectively, in addition to a rate adjustment, was not embraced. We believe that approach would have ensured greater equity," he stated.
He too has expressed surprise that, after engendering support at the parliamentary level in the UK and despite the fact that many agree that the current regime is discriminatory, there was no change.
"Notwithstanding our efforts, the current tax burden placed on British travellers to the Caribbean will continue to have an adverse effect on the region's tourism earnings," he predicted.
The Jamaican tourism minister has also cautioned that, "today's interdependent world countries must ensure that actions that are aimed at safeguarding their own fiscal positions do not destroy that of other global partners. If our legislation engenders poverty in other places, we are actually encouraging the migration of crime and other social ills through our insensitive fiscal policies."
Gleaner
Oil back above $101 despite US supply growth
Oil is back above $101 per barrel after earlier losing ground when a government report showed an unexpected increase in supplies. Weakening demand for gasolene and other petroleum products was the cause.
Benchmark West Texas Interme-diate on Wednesday fell 3 cents to $101.24 per barrel in New York. Brent crude, which is used to price foreign oil that's imported by US refineries, gave up 63 cents to $109.88 in London.
Prices dropped after the Energy Information Administration reported that oil supplies increased unexpectedly last week by 1.3 million barrels. Gasolene supplies jumped more than expected, adding 5.1 million barrels for the week ended December 2. Supplies are growing because of weak demand for oil-based fuels in the US.
Government figures show that gasolene demand in the US is on track this year to be at the lowest level since 2003.
Threat of recession
Oil has been hovering around $100 per barrel for more than a week. Investors are watching Europe's struggles to contain a banking crisis that threatens to pull the region into recession. Widespread spending cuts are expected to reduce energy demand within Europe and among major manufacturing countries like China that export goods to the Eurozone.
European leaders are working on ways to boost fiscal discipline and reduce debts. But credit ratings agencies have questioned if they're doing enough.
At the pump, gasolene prices rose more than a penny to $3.286 per gallon, according to auto club AAA, Wright Express and Oil Price Information Services. A gallon of regular unleaded is 12.1 cents cheaper than it was a month ago, but it's still 32.8 cents higher than the same time last year.
In other energy trading, heating oil gave up 1.8 cents to $3.004 per gallon and gasolene futures lost 4.12 cents to $2.6042 per gallon. Natural gas dropped by 6.1 cents to $3.427 per 1,000 cubic feet.
IMF and African, Caribbean and Pacific group of states to intensify cooperation
The International Monetary Fund (IMF) and the African, Caribbean and Pacific (ACP) group of states agreed on Wednesday to strengthen their cooperation in the field of capacity building to bolster members’ economic institutions and policy making expertise.
IMF deputy managing director Nemat Shafik and ACP secretary general Mohamed Ibn Chambas signed a memorandum in Brussels acknowledging their common interest in fostering sustainable capacity building initiatives in the ACP states and in establishing and maintaining effective consultation, cooperation, and exchange of views and information.
Before the signing ceremony, in a presentation to the ACP Ministerial Committee on Development Finance Cooperation, Shafik discussed how the global economic crisis has affected low-income countries as well as the IMF’s response.
“Though low-income countries have been affected significantly by the crisis, many were able to mitigate the impact of the shock with a countercyclical policy response. Now it is critical that ACP and other low-income countries strengthen buffers against future shocks by mobilizing domestic revenues, increasing domestic savings, further developing local financial markets, and expenditure prioritization,” she said.
In addition to its policy advice and lending, the IMF actively assists countries in building capacity in its areas of expertise. Half of IMF technical assistance already benefits ACP countries, most of it delivered through six regional technical assistance centers. The global financial crisis and continued vulnerabilities of ACP countries make the advice and technical assistance provided through these centers even more relevant.
The planned expansion of the centers serving ACP regions, including the opening of a new Center in West Africa as soon as funding has been secured, would permit virtually full coverage of the ACP zone.
“The network of regional technical assistance centers serving ACP countries is a project that benefits all your members and help them better address the growing volatility of the economic environment. It greatly contributes to reinforce coordination between the national, the regional and the supra-regional level in the ACP zone. The IMF is determined to further develop its cooperation with the ACP Group,” Shafik stressed during the signing ceremony.
Chambas noted: “There are substantial synergies between the regional technical assistance centers and the core work of the ACP group. The areas in which the technical assistance centers are providing assistance, such as debt and revenue management, are critical in helping ACP countries to navigate through these challenging times.”
Caribbean News Now
Five broad areas for CARICOM-Cuba talks
Heads of government of the Caribbean Community (CARICOM) and Cuba meet in Port of Spain, Trinidad and Tobago on Thursday, 8 December, CARICOM-Cuba Day.
All independent member states of the Community will be represented, with ten at the level of head of government. The Cuban delegation will be led by the President Raul Castro.
This fourth CARICOM-Cuba summit will be focussing on five broad areas. These are sustainable development, CARICOM-Cuba relations, regional integration, Haiti and security.
The summit was preceded by a meeting of the foreign ministers of both sides on Wednesday.
Caribbean News Now
Diego Corp awaits report on damaged homes
The Diego Martin Regional Corporation is awaiting a report from its engineering department to determine whether or not victims now housed in shelters can rebuild their homes, damaged by recent floods and landslides.
The corporation’s chairman, Anthony Sammy, told Newsday that the Engineering Department has been mandated to conduct a Disaster Emergency and Needs Assessment (DENA) of the areas where landslides toppled several homes and damaged others making them uninhabitable. He expects the report to be ready by next week.
The report along with assessments conducted by the Ministry of the People and Social Development, he said, will determine whether the victims will be able to return to the area, and what assistance could be provided.
Over 80 persons are still in shelters, including many children and two differently-abled persons. More than 100 had been accommodated in the shelters. A small number has returned to their homes, and 11 have been given keys to Housing Development Corporation apartments in Oropune, Piarco.
Sammy was aware that some persons want to return to their communities because they think they could effect repairs to their damaged homes. The National Self Help Commission and the government, he said, will not dispense with grants if the engineering department recommends that the area is under threat.
“We don’t want to give grants to persons who will go back and rebuild homes in the areas that will experience similar disasters in future,” he said.
Asked how long the corporation will be able to keep the victims at the three shelters set up to accommodate the victims from La Seiva, Cocorite and from other parts of Diego Martin, Sammy said he has written to the relevant government ministries to advise on an exit strategy.
The regional corporation, he said, is mandated to establish shelters within the first 48 hours in disasters. After that, he said, the Ministry of the People and other government agencies would take over.
“I have written to them to let us meet,” he said. In the meantime, he said that the regional corporation is doing its best to keep the people comfortable in the shelters set up in three community centres. The Belle Vue community centre housed a kindergarden school, but the school was closed temporarily because of the shelter.
A lot of recreational and other social activities take place at the community centres, especially during the Christmas season.
Anguilla chief minister warns: country under threat
An ongoing controversy between the Anguillan government and two UK representatives over the transfer of permanent secretaries has taken a turn for the worse with the chief minister warning residents that the country is now “under threat.”
The warning came in a national address delivered more than a week after Chief Minister Hubert Hughes returned from London where he attended the Overseas Territories Conference.
UK Overseas Territories Minister Henry Bellingham, who hosted the meeting, had agreed to ask the Foreign and Commonwealth Office to review the decision of British-appointed Governor Alistair Harrison after complaints from the chief minister and his regional colleagues.
Hughes has accused the governor and his deputy of attempting to “disrupt” his ministry by failing to consult with him, and replacing a veteran civil servant with someone with no experience in finance.
However, the chief minister said Governor Harrison has since informed him that the previous “decision stands.”
“I think at this point our island is under threat by the action of the Governor and Deputy Governor,” the chief minister told residents. “This does not make sense since it is a poor use of our precious human resources and does a disservice to you the taxpayer who pays for the salaries of these civil servant.”
“In addition, given that specific timelines were set for us in relation to our budget, the action of the Governor and Deputy Governor has amounted to a shifting of the goal posts in mid-stream and serve to handicap this administration in our recovery effort on the budget.
“What is more troubling however is that despite the expression of my concern over these transfers when Anguilla is in its toughest economic climate the Governor and Deputy Governor have total disregard for the interests of the people of Anguilla,” he added.
The chief minister and the governor have had an adversarial relationship.
Earlier this year, they were at loggerheads over approval for the national budget and the issuance of visa waivers.
Caribbean 360 NewsChief Minister Hubert Hughes has taken issue with a decision by UK-appointed Governor Alistair Harrison to transfer permanent secretaries without consulting him
Caribbean 360 News
T&T: U.S says no to Hilton
The union representing workers at the Hilton Trinidad hotel Wednesday criticised the United States government over its failure to grant a license to the hotel to host the Caribbean Community (CARICOM)-Cuba summit here on Thursday.
Cuban President Raul Castro arrived here on Wednesday for the talks with CARICOM leaders, but the US-based hotel chain, Hilton Worldwide, said it had been denied a special licence from the United States government to allow for the meeting to be held at the Hilton Trinidad and Conference Centre.
The summit, will now take place at the National Academy for the Performing Arts (NAPA) in the capital.
John Julian, general secretary of the Communications Workers Union (CWU), which represents workers at the hotel, told reporters that the move by Washington is wrong.
“The hotel is owned 100 per cent by nationals of Trinidad and Tobago. In fact when they had the upgrade for the (Summit of the Americas) in 2009…more thanTT$250 million (US$41.6 million) of tax payers money (was used) to upgrade the hotel.
“Hilton International did not put any money in it. For it to come now and say that you need to get permission we find that to be insultive to the people of Trinidad and Tobago and CARICOM”.
Hilton Trinidad and Conference Centre general manager Ali Khan read a statement from Hilton Worldwide, entitled “Hilton Worldwide regarding CARICOM/Cuba Summit” that noted “as a US-based company, Hilton Worldwide is subject to US law, which restricts certain activities as a result of the trade embargo with Cuba.
“The US/Cuban assets control regulations administered by the Office of Foreign Assets Control (OFAC) at the US Department of the Treasury generally prohibits US-based companies from providing any services that benefit the Cuban Government unless specifically licensed. Violations are subject to significant civil and criminal penalties.
“While we have worked with the appropriate governmental agencies in the US and Trinidad and Tobago to secure a licence, we have been informed that one will not be granted.”
Hilton Worldwide advised in its letter that further questions should be posed to the US Embassy in Trinidad and Tobago.
Julian said the decision of Washington would also impact negatively on the workers at the hotel who would have benefitted from the various services taxes paid to host the summit there.
He accused the Kamla Persad Bissessar government of “not taking a proactive approach to the situation” and that the action by Washington would cost the hotel “a lot of money.
“In this Christmas period when a lot of activities are no longer at the Hilton…we believe that this was an ideal opportunity for the Hilton hotel to be of prominence again to be the number one hotel in Trinidad and Tobago and indeed the Caribbean”.
Julian said it would be important to know how the United States could determine who stays at the hotel which is owned by the government and people of Trinidad and Tobago.
Nation News
Advanced desalination technology brings clean drinking water to Bahamas
An advanced desalination technology is helping a water scarce region in The Bahamas conserve water, expand water production and improve its access to clean drinking water.
Residents of Tarpum Bay on the island of Eleuthera in The Bahamas have been suffering with brackish and poor quality water for many years. GE provided its seawater reverse osmosis (SWRO) membrane technology to a new water treatment plant, which can now produce 200,000 imperial gallons per day of desalinated water. Specifically, the plant uses GE’s SeaTECH 84 SWRO system.
“The completion of the Tarpum Bay/Rock Sound Reverse Osmosis Desalination Plant was extremely important to the residents of South Eleuthera who have suffered for many years with poor quality water due to high salinity levels,” said Philip J. Beneby, assistant general manager, Water and Sewage Corporation of the Bahamas. “GE’s water technology enabled us to provide highly improved water quality to the community.”
Although the facility began commercial operation in June, the Tarpum Bay plant held a grand opening ceremony on November 11.
“Lack of fresh water lowers living standards. In regions where the ocean is a predominate source of usable water, desalination using seawater reverse osmosis membrane technology is a viable option to create a new water supply,” said Jeff Connelly, vice president, engineered systems — water and process technologies for GE Power & Water. “GE’s advanced technologies can remove minerals and salt from brackish water, which converts previously unusable water into high-purity water for drinking, irrigation or industrial uses.”
With the commissioning of the Tarpum Bay/Rock Sound Reverse Osmosis Desalination Plant, there are now three GE water treatment facilities on the Bahamian island of Eleuthera.
Caribbean News Now
WORLD AIDS DAY COCKTAIL PARTY AT THE VERANDA RAISES $6,000
On Thursday 1 December Turks & Caicos AIDS Awareness Foundation (TCAAF) observed World AIDS Day 2011 with a cocktail party hosted by the Veranda, featuring a fashion show by talented local designer Kazz Forbes of Saint George Fashion House. Hundreds of people came out to drink champagne and nibble tasty hors d'oeuvres while being treated to a special presentation of two spectacular SGFH collections – first the celebrated “Le Caicos Chic” and then the debut of “Red
Afrique: For a Cause” which is inspired by those affected by HIV and AIDS. SGFH’s showcase wowed the party goers and brought the evening to another level.
The TCAAF Directors took a few minutes out of the night to honour fellow founding Director Dr Dawn O’Sullivan in recognition of her invaluable ongoing contributions to the fight against HIV/AIDS in the Turks & Caicos. Dr O’Sullivan graciously acknowledged the tribute: “I am truly humbled, as all the work is done by the unsung heroes of the TCAAF. However I am so proud to accept this honour on behalf of them and the community workers caring for people living with HIV and AIDS.”
The proceeds from the evening will go towards running programmes at the Edward C. Gartland Youth Centre. Four years ago the TCAAF began building the Edward C. Gartland Youth Centre in order to provide the young people of the TCI with a safe, fun place to spend their free time, develop hobbies and learn new skills. The Centre recently celebrated its 3rd anniversary and currently has over 1000 members and sees over 50 young people per day. It offers a number of fun and productive activities, such as tutoring, playing basketball, doing research in the Centre’s computer suite, dance classes, various art and crafts, and monthly seminars run by Rapport, the youth arm of the National AIDS Programme. The Centre caters for 12-18 year olds. The Youth Centre relies on funds raised by the TCAAF, and various
other donors, in order to keep its doors open. The Centre members do not pay a fee.
“This year’s World AIDS Day theme here in the TCI was ‘Getting to Zero through Community Participation towards Eradication’ which was very fitting as over 200 members of our community came out to support us on the night” said TCAAF President, Jeanne Savory. “Without our community’s continued generosity the Youth Centre could not continue to provide young people with such important programmes which open up doors for a brighter future. Our heartfelt thanks go out to all those who support the TCAAF in any number of ways.”
“We would also like to thank Kazz Forbes for amazing our guests with two extraordinary collections. He is a wonderful example of the huge talent and endless potential found among young people in the Turks & Caicos. Our appreciation also goes to Kulbhushan Tyagi and Angelo Robinson from The Veranda, who were both instrumental in making the evening such a success. Not only was the event carefully planned out and the venue beautifully presented - the Veranda generously donated 10% of the evening’s cash bar as well!”
Further gratitude must go to the sponsors of the party - Wine Cellar and FOTTAC; the humourous MC for the night Penryn Brooks; Pennylane Studios; Hezron Henry and Rapport volunteers; Youth Centre volunteers Cherish and Kelisa; Wilma Dietsche of CBMS; and Raffle prize donors – Goldsmith, the Sands, Hemmingways, Villa del Mar, Caicos Dream Tours, Marin Restaurant at Veranda, and Rouge Grill at Grace Bay Club.