The Tribune.
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Title: The Tribune.
Uniform Title: Tribune. (Nassau, Bahamas).
Alternate Title: Nassau tribune
Physical Description: v. : ill. ; 58 cm.
Language: English
Publisher: Tribune
Publication Date: 1/19/2011
Spatial Coverage: Bahamas
General Note: Description based on: Vol. 79, no. 210 (Aug. 3, 1983); title from caption.
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Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 09994850
oclc - 9994850
System ID: UF00084249:01783


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N N A A S S S S A A U U A A N N D D B B A A H H A A M M A A I I S S L L A A N N D D S S L L E E A A D D I I N N G G N N E E W W S S P P A A P P E E R R BTC papers to go public V olume: 107 No.47WEDNESDAY, JANUARY 19, 2011 PRICE 75 (Abaco and Grand Bahama $1.25 W EATHER CLOUDSAND SUNSHINE HIGH 82F LOW 71F F E A T U R E S SEETHEARTSSECTION S P O R T S A breath of fresh paint SEESECTIONE Knights rout T-Wolves B y NOELLE NICOLLS Tribune Staff Reporter A LL documentation relat ed to the privatisation of BTC from 1999 to the present will b e tabled in Parliament for scrutiny by the public, said Minister of National Securi-t y Tommy Turnquest, leader o f government business. As soon as the terms of the BTC sale agreement aref inalised, Mr Turnquest said the government will release all the details and documents related to the sale process f rom its inception. T he government will place the latest agreement of sale for 51 per cent of BTC to C able and Wireless Commu nication (CWC domain and allow two weeksb efore debate is scheduled, said Mr Turnquest. Details of the Bluewater deal, negotiated under thef ormer Progressive Liberal Party (PLP will be revealed, he said. Z hivargo Laing, Minister of State for Finance, said he could not say whether or not the names of the Bluewater Government will release all details of sale once finalised M cCOMBO O F THE DAY N E W The Tribune THEPEOPLESPAPER BIGGESTANDBEST L ATESTNEWSONWWW.TRIBUNE242.COM DOSSIER REVEALS FEARS OVER ST ATE OF AMBULANCES P ARAMEDICS in Grand Bahama claim they are still incapable of responding to any major industrial or natural disaster on the island. The frustrated workers say an insufficient and poorly-maintained ambulance fleet, and the lack of a proper dispatch centre, has prevented them from effectively providing e mergency care to the nearly 52,000 residents on the island. Today, The Tribunes Ava Turnquest explores the concerns raised by the Emergency Medical Services (EMS who believe their department is not given the necessary priority as the nations second city. SEE PAGE SIX HAITI'S EX-DICTATOR Jean-Claude Duvalier known as Baby Doc, centre, is taken out of his hotel by police in Port-au-Prince, Haiti, yesterday. A judge will decide whether Duvalier will be tried on charges that include corruption and embezzlement for allegedly pilfering the treasury before his 1986 ouster, a lawyer for the ex-strongman said Tuesday. (AP SEEPAGE11 HAITI MOVES T OWARDS CORRUPTION TRIAL FOR DUVALIER B AHAMASBIGGEST CARSFORSALE, HELPWANTED ANDREALESTATE I N S I D E SEE page nine By NATARIO McKENZIE Tribune Staff Reporter ATTORNEYS for Cheryl GrantBethell yesterday claimed the veteran prosecutor had not been afforded the opportunity to defend herself against information presented to the Judicial and Legal Services Commission while considering her application for the post SEE page nine GRANT-BETHELL HAD NO CHANCE TO DEFEND HERSELF AGAINST LAW JOB REPORT VETERAN PROSECUTOR: Cheryl Grant-Bethell By DENISE MAYCOCK Tribune Freeport Reporter F REEPORT: A second male student took the stand yesterday in the Andre Bir b al sex trial, telling the Supreme Court jury his art teacher took nude photographs of him in the class room at school. The young man, who is n ow 21 and lives in the US, attended the Eight Mile RockH igh School from 2001 to 2007. He said Birbal was his art teacher during that time. The former student said the photograph sessions took place in Mr Birbals art classroom in 2001 when he was in the seventh grade. All the windows in Birbals classroom were covered and there were latches on the door inside, the witness recalled. He was alone in the class room using the computer when Birbal came in and locked the door. The young man said Birbal put up a white sheet and asked him to pose for pictures. He asked me to take off my uniform. I was in my boxers and he made me put on a hard hat, tool belt, and gave me a hammer to hold in my hand. He then took off my boxers and continued taking photos, the witness recalled. The young man said the teacher then gave him $20. On the second occasion, after posing for photographs in the classroom, Birbal per formed a sex act on the stu dent. The witness said the sexual SEE page nine ONE of the countrys major hoteliers has thrown his support behind the Government's selection of Cable & Wireless Communications as the buyer of a $210 million majority stake in BTC. Sandals resort chief Adam Stewart yesterday endorsed the sale to CWC, describing the international company as a valuable partner expected to bring good things to the state-run telecommunications provider. Bahamas Communications and Public Officers Union (BCPOU Evans, who strongly opposes the sale to CWC, said the endorsement is not unexpect ed but cannot change the labour movement's opinion that the impending privatisation is a bad deal. However, Mr Stewart said: "The hospitality industry expects and deserves the best SEE page nine MAJOR HOTELIER BACKS BTC SALE TO CABLE & WIRELESS SEC OND S TUDENT TES TIFIES IN TEA CHER SEX CASE


LOCAL NEWS PAGE 2, WEDNESDAY, JANUARY 19, 2011 THE TRIBUNE S ERVICE: T he Grand Bahama District of the Royal Bahamas Police Force held its annual Church Service and Parade on Sunday at the Central Church of God on Coral Road. The event began with a march from Christ the King Pro-Cathedral. Senior Pastor Rev Dr Fred Newchurch delivered the sermon. Also in attendance were Minister of National S ecurity Tommy Turnquest, Commissioner of Police Ellison Greenslade, parliamentary representatives for Grand Bahama and high r anking officers from the Customs Department, Immigration Depart ments, the Road Traffic Department and the Royal Bahamas Defence F orce. Grand Bahama District of the Royal Bahamas Police Force holds CHURCH SERVICE AND PARADE


I N early December, d owntown retailers put final touches on their festive displays for the Downtown Nassau Partnerships Annual Holiday Window Competition. Lights, gift boxes and othe r elements were positioned i n windows of the participating stores to celebrate t he Christmas season and w in over the judges of this a nnual event. The competition was more than a celebration ofC hristmas. It demonstrated a new wave of excitement and innovation among the retailers a clear signal of some momentum with the revitalisation, said Vaughn Roberts, DNP managing director. T he participants in the c ompetition were judged on originality, creativity and t he overall appeal. The judges did not only consider the beauty of the w indow displays, but the amount of thought and time that went into them as well. The businesses were p laced into one of three categories based on the number of employees. The j udges included artist Kishan Munroe, Kendal Major, senior manager with the Ministry of Tourism and A viation, Tyler Miller and Khiry Adderley, art students at the College of theB ahamas. Participating stores in Category A included Coin of the Realm, Coles of Nassau, Delucci, Kings Discount, Maison Dcor, the Linen Shop and the Perf ume Shop. T he winner of this category was Maison Dcor with its display by NiocaM iller. Second place went to Kings Discount for its orig inal theme A Bahamian C hristmas displaying handm ade straw items on a live model. The Perfume Shop came in third place. Stores in Category B were Solomons Mines and John Bull. Solomons Mines tookf irst place with its theme of My Favourite Things. John Bull was a close sec ond. C ategory C consisted of three banks: Scotiabank, Bank of the Bahamas andF irstCaribbean Internation a l Bank. The winner of this category was Scotiabank on R awson Square. Scotiabank displayed true holiday cheer with reindeer-eared tellers and greeters dressed in elf costumes, the DNP said. The DNP also initiated the Peoples Choice Award using Facebook to collect votes from the public on their favourite display. The first Peoples Choice Awardwent to Kings Discount Store. Errolee Conliffe, project m anager with the DNP, said: It was a tough yet fun competition designed to getr etailers to participate in m aking the town come alive during the holidays. It is so important that residents and visitors come to enjoy themselves in downtown. T he DNP is an interim organisation formed in 2008 as a joint venture of the pri v ate and public sectors to a chieve a progressive rede velopment of the city of Nassau. LOCAL NEWS T HE TRIBUNE WEDNESDAY, JANUARY 19, 2011, PAGE 5 TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM HANDS For Hunger is gearing up for its third annual fundraiser, Paradise Plates, scheduled to take place on May 21 at the Atlantis Crown Ballroom. The event, which aims to raise money for the fight against hunger i n the Bahamas, will showcase a w ide array of gourmet food prep ared by chefs from Nassaus premier restaurants, fine wine and spirits as well as live entertainment, organisers said. The coming event will also feature a silent auction and a raffle. All proceeds will benefit Hands For Hunger, a non-profit, humani tarian organisation committed to t he elimination of hunger and the reduction of food waste in the Bahamas. Last year, Paradise Plates served more than 450 hundred guests who came out in support of the cause. Hands for Hunger is extremely p leased and humbled by the cont inued success of Paradise Plates, said Ashley Lepine, the organisations executive director. Based on the events popularit y and the positive feedback we c ontinue to receive, we plan on m aking this years fundraiser even larger. Many of our participants are planning to join us again and we will also be featuring new restaurants, chefs and their signatures d ishes. It promises to be another w onderful evening. A ll proceeds from Paradise Plates will go to the food rescue programme. Each day, Hands For Hunger p icks up fresh, high quality food t hat would otherwise go to waste a nd delivers it to community centre shelters, churches and soup kitchens throughout New Providence, the organisation said. Since operations began in March of 2009, Hands for Hunger has dist ributed over 230,000 lbs of food to t hose in need (approximately e qual to 230,000 meals served). According to the organisations representatives, Hands for Hunger also prevented more than 400 t onnes of carbon emissions from entering the atmosphere Hunger is a solvable problem. It is a fact that there is more than enough food on this island to amply feed every single woman, man and child. Hands For Hunger functions to connect this excess s upply with the unmet, ever growi ng need through the more equit able and efficient distribution of resources, said Alanna Rodgers, founder and programme coordinator of Hands For Hunger. The proceeds raised from Paradise Plates will go directly to helping us feed the hungry in our community. THE BAHAMAS VER YOWNSTREETPHILOSOPHER Hands for Hunger prepares for annual Paradise Plates Event to showcase wide array of gourmet food DOWNTOWN MERCHANTS SHOW A NEW WAVE OF EXCITEMENT


L OCAL NEWS P AGE 6, WEDNESDAY, JANUARY 19, 2011 THE TRIBUNE T O DISCUSS ST ORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM ?D? $OOODQWVbRI :LQFKHVWHUWUHHWDOPGDOHEHWZHHQHDUVGDQG+DZNLQV+LOOf By AVA TURNQUEST T ribune Staff Reporter a NEARLY four years since a mass s ick-out brought their concerns to national attention, paramedics say t he Emergency Medical Services department on Grand Bahama is still without vital resources or adequates ecurity. In a lengthy dossier detailing curr ent faults within the pre-hospital c are system, paramedics claim severe n eglect of their department continues t o affect unnecessary, and in some cases fatal, challenges to the entire h ealth care system. The statement read: We are fighting for the lives of our patients and its houldnt come to this. We are begging and pleading for annual training and proper-functioning equipment that will give our patients a fighting chance at life. The statement went on: Prevention is better than cure and wes trongly feel that if pre-hospital care was enhanced, there would be fewer patients in the morgue and on the wards causing overcrowding. Speaking anonymously for fear of v ictimisation, the collective statem ent sought to clarify previous a nnouncements made to the media which they felt detracted from major concerns. L ong-standing inadequacies, which were said to have fatal consequences, were an insufficient and poorly-main tained ambulance fleet, and the lack o f a proper dispatch centre. It is alleged that due to the workl oad and the scarcity of vehicles, ambulances frequently break down during emergency transport. M echanical faults routinely exper ienced were said to include abrupt power loss, locked steering wheel, and gas leaks. Late last year, Minister of Health Hubert Minnis confirmed plans for several improvements to the depart m ent in Grand Bahama as part of major upgrades to public healthcare nationwide. Five new ambulances are expected t o arrive this month, two of which have been designated for Grand Bahama. However, the crews statement r ead: With every minute that pass es, the patient or patients condition is getting worse. By the time wea rrive on the scene, the patient that w as once conscious, is now unconscious. Past emergencies said to be negatively affected by transport challenges were: 1. The July 2006 tornado which i njured 21 people and seriously injured 3 people in West End. 2. The November 2007 traffic fatal ity in the Seven Hills area which c laimed the life of one person and seriously injured 13. 3. The November 5 traffic fatality last year, in which one person died and five persons were seriously i njured in McCleans Town. T he statement claimed: We got tired of writing letters and incident r eports and nothing being done a bout them. We are sick and tired of being blamed for lengthy response times to emergencies that were not our fault. I n 2007, only two managers s howed up for work at the EMS D epartment on February 12. Concerns raised at that time were acknowledged by hospital officials a s legitimate and said to include: wages, proper accommodations (rest quarters and bathroom facilities),p roper dispatch centre, pest control, security, insufficient uniforms and proper equipment (thicker gloves In the statement, it was alleged that only two of the seven major conc erns had been resolved following the relocation of the department. T he statement read: Our 911 dispatch centre is still not operational in Grand Bahama, as it has been in New Providence since 1999 all 911 c alls are answered at the police sta tion, which has to turn around and call us at our station, causing yet another delay in our response time. We are deeply saddened by the many delays we encounter daily. U nlike the department attached to the Princess Margaret Hospital in New Providence, the statement c laims there were no specific provis ions for EMS in the Grand Bahama hospital budget. T he statement read: If a budget i snt specifically assigned for Grand Bahama EMS to facilitate new equipment, training, vehicle repairs, etc., how can the general public bene fit from effective and advanced preh ospital care? T he frustrated paramedics also hit out at the lack of training opportunities in comparison to Nassau-based s ervices. It was alleged there had been no formal training for employees in thed epartment since 2004, and current certifications held by staff were financed privately and never reimbursed. Calls placed to Grand Bahama H eath Services were not returned up to press time as administrator of t he department, Sharon Williams, was said to be on leave. Inquiries made to the Public Hospitals Authority on the matter were a lso unsuccessful. EMS Director Dr Avery Hanna confirmed that proper gloves for the department were scheduled to arrive this week, however she said she could not speak directly to the concerns ofG rand Bahama personnel. GB Emergency Medical Services still without vital resources CHINESE AMBASSADOR to the Bahamas Hu Dingxian visited Inagua over the weekend with Senator Dion Foulkes and Minister of Youth, Sports and Culture Charles Maynard. THE CHINESE AMB ASSADOR VISITS INAGUA UNITED NATIONS Associated Press IRAN'S U.N. envoy said Tuesday the most important thing that world powers can do at upcoming talks in Istanbul is recognize his country as major player with "nuclear capability" that is ready to cooperate on major issues including nonproliferation. Ambassador Mohammad Khazaee warned Iran will nev er respond to sanctions, threats or political or economic pres sure and will "never negotiate on our inalienable right to use nuclear energy for ... peaceful purposes." "It doesn't mean that Iranians are looking for confrontation," he said. "But at the same time ... it's not going to work to put a knife in the neck of somebody, or your sword, and at the same time asking him to negotiate with you." Khazaee spoke ahead of new talks on Jan. 21-22 with the U.S., Britain, France, Germany, Russia and China. DOSSIER: Pictured above is the letter sent by frustrated paramedics in Grand B ahama who feel that their department does not get the necessary resources it needs. IRAN W ANTS WORLD POWERS TO C OOPERA TE AS EQU ALS


LOCAL NEWS THE TRIBUNE WEDNESDAY, JANUARY 19, 2011, PAGE 7 TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM THE Ministry of Environment is three months away from making a determination on how to move forward with the countrys waste management system, e xploring various avenues t o turn the sector into a thriving industry, officials s aid. A ppearing on the 14th a nnual radio programme called Operation LoveYour Country, which was aired live from Marathon onL ove 97 radio on the weekend, Dr Deveaux said the Governments plans fore xpanding opportunities within Department of Envi ronmental Health Services (DEHSm ise current jobs, but rather w ill create new jobs for oth ers in the waste management sector. What I (described terms of collection, man agement and waste to ener gy will create infinitely more jobs, better paying jobs, and have a cleaner environment than what we have today. But if you have that discussion today, it will become, well, whose job will be l ost? than rather whose job will be gained, whose health w ould be improved and w hose life will be i mproved?, said Dr Deveaux. T ax es T he minister said every h ousehold currently pays an average of $10 per month through taxes for garbagec ollection and waste man agement services. It wasnt our intent at this time to introduce ad irect fee paying for resi dential collection. What we wanted to do, without increasing the cost ofg arbage collection, was to improve the efficiency of collection. So we have a number of proposals we had solicited and that had come to us independently, he said. M inister Deveaux said the G overnments solution to reducing the cost of garbage c ollection for Bahamian h ouseholds will include the i ntroduction of a pro gramme that requires each house to have a covered trash receptacle from a com m ercial garbage collection service, to semi-privatise DEHS garbage collection. We are about three months away from a deter mination, but a determina tion will be made, said Dr D eveaux. It puts a big face to this very serious environmental issue, management issue,a nd finally this huge oppor tunity to convert this grow ing problem into an industry that could serve the B ahamas and ensure a bett er management of our solid w aste. Collection M inister Deveaux e xplained how the garbage collection is organised with in the government system in New Providence and in theF amily Islands. He also explained the challenges DEHS faces to collect then ations waste and manage its disposal in accordance to health requirements. All of our waste in the B ahamas that is of a comm ercial nature is handled by the private sector and it represents approximately 40 per cent of the total waste, he s aid. In the islands to varying d egrees, the local government is responsible for the residential collection. Here,i n New Providence, its the Department of Environmental Health. We have three challenges in a broad sense. The collection of garbage by DEHS is constrained by thea vailability of vehicles, the f requency of collection, and traffic. Then, we have the site. W e today need to construct a new cell. We need to rehabilitate an older cell and we need toc ap a cell, so we can have a place to dispose of the waste. That will give us approximately 10 years. W hat happens after 10 y ears? D r Deveaux listed the long-term goals of the Ministry of the Environmentw hich are necessary to sustain the nations continual management of increasingw aste disposal in the face of urbanisation. Our goal is to recycle as much of our waste as wec ould. Re-use as much of it as we could, but eventually to convert the waste to a usefulf orm of energy. In order to get there, we have to improve the collection, the management of thes ite, and the technical abili ty at the site to reuse, recy cle, and dispose, he said. Decision on waste management system three months away ENVIRONMENT MINISTER Dr Earl Deveaux walks door to door and speaks with concerned residents of the Marathon constituency. ENVIRONMENT MINISTER Dr Earl Deveaux pointed out an abandoned delivery truck parked in Fergus on Way, which has been a major eyesore for Marathon residents who have complained to the Ministry of the Environment that derelict vehicles in the area are devaluing their private property. URCA, MINISTER OF THE ENVIRONMENT DISCUSS FUTURE PRIVATISATION OF UTILITIES SERVICES THE Utilities Regulation and Com petition Authority (URCA tesy call on Minister of the Environment Dr Earl Deveaux and Minister of State for the Environment Phenton Neymour on Monday, January 17. They discussed the future of utili ties privatisation and systems to be put in place to simplify the process of collecting revenue for utilities services and providing services to the public. ABOVE:Pictured from left to right are URCA senior case officer Stephen Bereaux; URCA CEO Usman Saadat; Minister of State for the Environment Phenton Neymour; Minister Deveaux; Environment permanent secretary Ronald Thompson; and Diana Light bourne, under -secretary. RIGHT:Pictured from left to right are: Usman Saadat, CEO of URCA; Minister Deveaux; Minister of State Ney mour and Stephen Bereaux, URCA senior case officer. Gena Gibbs /BIS HAVANA Associated Press C UBAsaid Sunday that the Obama Administration's decision to lift some travel restrictions on students, academics and religious groups and make it easier for Americans to send money were positive steps, but not near ly enough while Washington maintains its 48-year trade embargo on the island. The changes announced last week mean that students seeking academic credit and churches and synagogues traveling for religious purposes will be able to go to Cuba. Any U.S. international airport with proper customs and immigration facilities will be able to offer charter services to the island. The plan will also let any American send as much as $2,000 a year to Cuban citizens who are not part of the Castro administration and are not members of the Communist Party. Previously, only relatives could send money. "Though the measures are positive," Cuba's Foreign Ministry said in a statement Sunday, "they are well below what was hoped for, have a limited reach and do not change (U.S. Cuba." The ministry said most of the changes simply bring U.S. policy back to where it was during the Clinton Administration, before President George W. Bush toughened restrictions. They do not alter Washington's trade embargo, which Cuba refers to as a "blockade." CUB A SAYS US TRAVEL CHANGES NOT ENOUGH


P AGE 8, WEDNESDAY, JANUARY 19, 2011 THE TRIBUNE T O DISCUSS ST ORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM "As I watch these students and their families, all so proud of their accomplishments, I cannot help but feel sorry for them...How will they feel about themselves in this tourist industry, playing the role of servant so clearly constructed as being part of the nature of Bahamian culture." Dellareese Higgs, 2008 doctoral dissertation. It is clearly the case that, as a result of tourism, the Bahamas is chronically d ependent. Felix Bethel, College of t he Bahamas lecturer. Tourism is a form of leisure imperialism and represents the hedonistic face of neocolonialism." Malcolm Crick, British a nthropologist "While direct travel services g enerated $1.8 billion in e xport earnings, the econom y spent $1.9 billion on the purchase of merchandisei mports. It could be suggested t hat in the (Stafford Sands model, the state of foreign reserves is in fact the economys ultimate monetary target." Gabriella Fraser, researcher at the Central B ank of the Bahamas, 2001 "Because of our addictive reliance on foreign investmento ur appreciation for Bahamia n genius is negligible and in so doing we are oppressing Bahamians.... Our economic model per petuates an economic apartheid." Olivia Saunders, Col l ege of the Bahamas lectur er. "One can argue that B ahamian national pride is to a degree a product of brochure discourse, of touris-t ic marketing; that much of w hat Bahamians love about their country is what travellers and the tourist industry claimis worth loving." Ian Strachan, College of the Bahamas lecturer The world seems to be divided between people who predict rain and people who build arks. We know which one is easier. Let them con tinue to predict rain in the face of these opportunities. We will work with those who are in the business of building arks." Vincent VanderpoolWallace, Minister of Tourism. By LARRYSMITH THE preceding series of quotes (except for the last one) is fairly representative of the intellectual discourse over tourism, economics and identity that rages from time to time in the academic and cultural world, both here and abroad. Interestingly, this normally esoteric debate was thrown into sharp relief last week when Tourism Minister Vincent Vanderpool-Wallace and College of the Bahamas lecturer Olivia Saunders delivered diametrically opposing views at the Bahamas Business Outlook conference on Cable Beach. The theme of the conference was economic diversification. This discussion began with a description of our current economic model. What is often described as the "Stafford Sands model" for ease of reference, is really just an updated version of the oppressive 19th century colonial system, critics say. It is a typical dependency model, which was fashioned long before Sands was born. And it needs to be over thrown. Olivia Saunders said the creation of the Development Board in 1914 formalised earlier promotional efforts b y paying foreigners to bring t ourists into the colony and to develop hotels. In the 1 930s, promoters like Harold C hristie started selling B ahamian land to wealthy foreigners for second homesa nd other investments. The i nflux of foreign capital was driven by the absence of tax-es on earnings. And all this set the country largely on the course it travels today. Although Sands was not the originator of this econ omic model, he did take advantage of the global econ omic recovery after the Seco nd World War to dramatically expand tourism and f inancial services. Rapid economic growth in the 1950s and 60s was partly due to unprecedented promotional spending to position The B ahamas as a year-round t ourist destination. Saunders summed it up like this: "The Bahamian economic model is designed for the country to relinquish responsibility for its resources and the com manding heights of its econ omy. It is one where the role of the residents is to provide labour and to be consumers while the owners of the economy, foreign nationals and a small minority of locals amass great wealth. This was a model that ensured underdevelopment of our human resources, she said. "We maintain a tax and incentive regime that not only favours the foreign investor but oppresses Bahamians...An economy so designed does not have much need for a local intelligentsia...It is disastrous for us to continue using the present economic model of dependence and economic apartheid." Saunders offered a vague three-point plan to address these deficiencies. First, leverage the abilities of Bahamians who have the aptitude and expertise to own and operate anything that is vital to nation-building. Second, ensure that Bahamian capital and resources benefit Bahamians rather than foreigners. And third, accept that our current economic model is dysfunctional and incapable of producing the results we need. "Human beings are more than workers and consumers, and policy makers should not measure how well the nation is doing by how many jobs arise from this or that project or how many cars are purchased," she said to standing ovations from some in the audience. "My advoc acy is for a new economy s o fashioned that it portrays and liberates Bahamian brill iance; an economy that is c ongruent with healthy and s ustainable communities, and an economy that extendsw ealth to Bahamian citiz ens." Vincent Vanderpool-Wallace offered a different approach. While acknowledging that tourism was facing "stiff headwinds" due toa longer than expected recess ion, "what is often forgotten is that the most diversif ied economies on earth are n ot only going through the same troubles we are, these h ighly diversified economies are in fact the source of our troubles. And several American states and European countries are now in deepert rouble than The Bahamas has ever seen in recent t imes." According to the minister, "any initiatives to grow o ur economy in the short and long term must be grounded in activities that arise from making existing and accepteds trengths stronger, because w e know that any effort that requires massive training andr etraining of our population, w hile noble, is for the medi um and longer term and is less certain. So yes, I believe in diversification, but notn ecessarily diversification in the way that consumes so much debate." He went on to cite statis tics that may surprise some readers. For example, if Nas sau and Paradise Island were a separate country, it would r ank fifth in the number of stopover visitors, second in the number of total visitors and first in the number of cruise passengers in the entire Caribbean. Yet these t wo connected islands are l ess than 2 per cent of the total Bahamian land mass. "Today, this 2 per cent 'country' would be the third wealthiest independent nation in the hemisphere," he said. "If fully developing only 2 per cent of our islands yields these results, imagine what could happen if we began to utilize more of our natural assets. If we want to diversify, why not diversify like Toyota did in extending their brands of cars? Why not diversify within ones areas of strength and comparative advantage?" As we all know, the Bahamas is right next door to the United States, which constitutes 25 per cent of the global economy a propor tion that is likely to remain relatively stable for the foreseeable future despite the growth of emerging economies like Brazil, Rus sia, India and China. Collec tively, these nations account for less than 12 per cent of global GDP today. Vanderpool-Wallace pointed out that despite our proximity to the world's largest economy, "it is much less expensive and takes less time to travel from most places in the US to most competing destinations in the Caribbean than it does to travel to any of our Family Islands. Reducing the cost and time for travel to our islands will most assuredly lead to explosive growth and can turn our economy from the wind in our face to the wind at our backs." This will also make domestic travel for Bahami ans much more appealing compared to the current cost advantages of a trip to south Florida, he said. "The power of low-cost, high-quality air and sea transportation is no l onger a debate in our indust ry. Our Companion Fly Free p rogramme has been the most successful promotion inh istory, selling nearly 300,000 room nights, and the growth of our cruise business by more than 18 per cent lasty ear is adequate testimony t o the value of low-cost access to a Bahamas vacation." W hile Nassau and Par adise Island teeter on overdevelopment, Vanderpool-Wallace noted that weh ave failed to provide ade quate inter-island transportation, and argued that "Infrastructure developmenti n an archipelago depends as much on connections between islands as it does oni nfrastructure on islands." H e advanced a "mission to the moon" vision in which Bahamians living on nearby islands like Eleuthera orA ndros would commute to work in Nassau as we begin to develop the other 98 per c ent of the Bahamas more completely. "Such commutes are done every day around the world. Why not The Bahamas? Our overall mission must be to go back to the islands through the expansion of inter-island transportation and communications ser vices." He envisioned a future where containers arriving at the new port on Arawak Cay can roll off vessels and roll onto trucks for transporta tion to other islands to deliv er goods to the resident population, returning to Nassau with farm produce. And pas sengers would be able to take their personal vehicles with them to travel through the archipelago. This will accelerate the use of first and second homes in the islands and "make that globally desired idea of living and loving the island life immensely more accessible and attractive." Efforts are already under way, he said, to establish an electronic booking system for all of the air and sea transportation within The Bahamas so that residents and visitors can book and pay for their transportation from anywhere on the planet to anywhere in The Bahamas. Currently, visitors have to go to airports and seaports to make those arrangements in most cases. "Imagine all of the land sea and air transportation throughout The Bahamas owned and operated by Bahamians. Imagine the size of aircraft and volume of seats coming into Lynden Pindling International Airport if substantial numbers of those passengers are also connecting to other islands of The Bahamas." He said the government's o nline initiatives and a robust t elecommunications sector w ere essential ingredients of this Back to the Islandsv ision. And all that is required for Bahamians to be successful in tourism are bed & breakfast facilitiest hat can be viewed and b ooked online from any where in the world along with the necessary air ands ea transportation. "When those difficulties are overcome, we can enable hundreds to enter thet ourism business immediate ly all over the country. And incentives could be offered to Bahamians now livingo verseas or on New Providence to move to the Family Islands. The largest incentivet hus far is the governments d eclaration that it will tackle the problem of generation and commonage land," he said. "That will be the great e st distribution of wealth in our history." While broader diversific ation of the economy is a wonderful mantra, Vanderpool-Wallace said the exploitation of our existing tourism assets will be more beneficial over the short term. "Tourism cannot grow without other sectors contributing to that growth and growing themselves. It needs agricultural, legal, accounting, medical, engineering and software services. The more useful mantra is that one must compete in one's area of comparative and compet itive advantage. We have not come close to making maximum use of tourism." Quoting motivational trainer Steven Covey's comm ent that the main thing is t o keep the main thing the m ain thing," VanderpoolWallace said our main thingw as "100,000 square miles of the most salubrious waters in the world. If we continue to guard and protect thatr esource, it does not diminish i n size or value over the course of time, unlike the natural resources of manyo ther nations. We have more islands and more beaches than the rest of the Caribbean combined. We are now at the begin ning of the biggest educational, transportation and electronic infrastructured evelopment in our history," he said. "This is the begin ning of the wave to move us a ll forward, upward and o nward together. For the sake of our children and grandchildren, now is the time to give focused atten t ion to the development of our islands." The contrast between V anderpool-Wallace's common sense vision of empowerment and the bitter, near Marxist, approach of acade mics like Saunders could not be more marked. We would urge policy makers to extrapolate this vision and incorporate other sectors to produce a coherent national development strategy with opportunities for public input and debate. What do you think? Send comments to Or visit Contrasting views on our economic model TOURISM MINISTER Vincent Vanderpool-Wallace (above O livia Saunders delivered diametrically opposing views. A A s s w w e e a a l l l l k k n n o o w w , t t h h e e B B a a h h a a m m a a s s i i s s r r i i g g h h t t n n e e x x t t d d o o o o r r t t o o t t h h e e U U n n i i t t e e d d S S t t a a t t e e s s , w w h h i i c c h h c c o o n n s s t t i i t t u u t t e e s s 2 2 5 5 p p e e r r c c e e n n t t o o f f t t h h e e g g l l o o b b a a l l e e c c o o n n o o m m y y a a p p r r o o p p o o r r t t i i o o n n t t h h a a t t i i s s l l i i k k e e l l y y t t o o r r e e m m a a i i n n r r e e l l a a t t i i v v e e l l y y s s t t a a b b l l e e f f o o r r t t h h e e f f o o r r e e s s e e e e a a b b l l e e f f u u t t u u r r e e d d e e s s p p i i t t e e t t h h e e g g r r o o w w t t h h o o f f e e m m e e r r g g i i n n g g e e c c o o n n o o m m i i e e s s l l i i k k e e B B r r a a z z i i l l , R R u u s s s s i i a a , I I n n d d i i a a a a n n d d C C h h i i n n a a .


LOCAL NEWS THE TRIBUNE WEDNESDAY, JANUARY 19, 2011, PAGE 9 TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM owners would be revealed in the documentation. Parliament resumes today from its Christmas recess amid much speculation over the anticipated agenda. Debate is set to focus on amendments to the Business License Act tabled at the close of the last session. Until an agreement is reached over the terms of the sale, the government will not present any BTC documents, said Mr Turnquest. While there is already a signed Memorandum of Understanding, Mr Turnquest said the MoU is a document, perhaps 10 pages long, to say we agree to move in this regard and these are the main tenants. What is presently being finalised is the agreement of sale, which contains the fleshed out details of the sale, he said. The possibility existed that an agreement would have materialised yesterday, but up to press time there was no news of a deal. Other possible documents forthcoming include a share holders agreement, a vol untary workforce restruc turing plan and a pension feeder trust, according to the PLP. Regarding debate on the BTC sale, Mr Turnquest said segments of the media are perpetuating a misunderstanding of comments made by Prime Minister Hubert Ingraham. Clarifying the point, Mr Turnquest said the documents will not be released to any third party prior to them being tabled in the House of Assembly, and debate on the sale will not happen the same time the documents are tabled. Based on common practice and the voluminous nature of the documents, there will be at least two weeks before the debate is set, he said. of Director of Public Prosecutions. Thomas Evans QC, who represents the Judicial Legal S ervice Commission (JLSC submitted however that it would not have matteredw hat Mrs Grant-Bethell had said as the information was, ashe stated, out there. S enior Justice Jon Isaacs, however, said it was a most u nsatisfactory basis on which t o act. Attorney Wayne Munroe, who represents Mrs Grant-B ethell, said it was procedurally improper and irrational for the commission to r eceive a report from the Security Intelligence Branch, make a determination on that report and not make Mrs G rant-Bethell privy to that information so she could defend herself against any d isparaging claims. M r Munroe further questioned how, if the committee accepted that report, couldi t then recommend her months later for another post that had never been advert ised. He also noted that because the commission had not kept records of its meetings r egarding the selection of a new director of public prose cutions, Mrs Grant-Bethell h ad no way of knowing what a ctually transpired. Mr Munroe said Mrs GrantBethell had refused thed eputy law reform commissioner post and it was not open to the commission to r emove her from her position. He said she should have been allowed to remain as Deputy Director of Public P rosecutions. Mr Evans accepted the JLSC had not kept a record o f its proceedings. He quest ioned the consequences of such an action and noted that when persons come to JLSC,t he body is under the assumption that the person, having been recommended, i s deemed a fit and proper person for the post. He told the court that the criticism levied against the J LSC by Mrs Grant-Bethells attorneys was unjustified. Mr Evans said Mrs GrantB ethell had been invited to a m eeting to make a representation on her behalf. Mrs Grant-Bethell filed an a pplication for judicial review after being passed over for the post of Director of Public P rosecutions, and instead being appointed Deputy Law Reform Commissioner. Jamaican attorney Vinette G raham-Allen was appointed DPP instead. i n communication services our guests look forward to communicating back home to share their experiences and demand speed, reliabil-ity and stability. Its an important part of the guest e xperience. LIME (Cable and Wireless) has been a valuable partner to Sandals across the Caribbean we have been able to improve the efficiencies of the Sandals group and provide greater service to our guests b ecause of LIME. I expect to see LIME do great things for BTC and e specially for the hospitality industry in the Bahamas and believe they have the right track record for thej ob." M r Stewart is head of the Sandals brand that operates 20 hotels in the region, including three in the Bahamas one on Cable Beach andt wo in Exuma. W hen contacted for comment on the announcement, Mr Evans saida corporate backing did not change the reasons for opposing the sale to CWC. "I have no doubt that you may find some good stories in theC aribbean about any particular business relationship but that's neither here nor there. We don't need anyone telling us what Cable & Wireless is. We have done our own investigations, weh ave affiliates in the region who have nothing to gain, no motive involved w ho tell us how they have done busin ess," said the unionist. "Look at what they have done in Barbados to the Barbados Workers' Union," added Mr Evans, referring to LIME's decision to let go more than 100 workers in Barbados inm id-2009 to cut costs. The move was m et with resistance by Barbados' labour movement. According to published international reports, it was claimed that LIME did not engage with the union before sending out letters of dismissal and later rescinded the offers under publicp ressure. Meantime, Frank Comito, executive vice president of the Bahamas Hotel Association, said the hotel industry welcomed the improvements in telecommunications thata re expected after BTC is privatised. "Affordable, reliable Internet and p hone service is essential to our i ndustrys competitiveness, and our ability to generate business and service our customers," said Mr Comito. "On the business side, it underpins our financial transactions ando ur communications with buyers and s uppliers. Our customers, whether they are travelling on business or pleasure, expect to stay connected at a reasonable price. Its no longer an option, it's required to be competitive," he added. On December 2, 2010, the Gove rnment announced it had signed a Memorandum of Understanding with Cable & Wireless Communications for the proposed sale of 51 per cent of the shares of BTC. Since the announcement, the i mpending privatisation has been criticised by the labour movement a nd the opposition. H owever, the Government has not caved into the protests and expect to conclude the sale sometime next month. encounters continued while he was in the eighth grade, in the classroom during schoolh ours The witness told jurors that Birbal also had sex with him in his sons bedroom at his home in East Grand Bahama, and at his apartment in Silver Sands. On both occasions, he said Birbal picked him up in his cars a small grey car and a blue Toyota. He said Birbal showed him around the house. He took him to his sons bedroom, where he had sex with him on the bed. The young man said he never told anyone about what Birbal did to him because he was an active student in school and was afraid that people would look at him differently. He said Birbal would give him money, and sometimes he would also ask the teacher for money. Birbal also brought a stove and furniture to his familys house in Eight Mile Rock. He said Birbal got the items from his church for hurricane relief. Prosecutor Erica Kemp asked the young man to identify his teacher, he pointed out the accused sitting in the courtroom. Carlson Shurland, defending, asked the form er student when he filed a complaint to the p olice about what happened to him. The wit ness said he reported it in 2008 after leaving school. M r Shurland asked the witness if he enjoyed getting money and things from Birbal. Yes; every kid want money in their pock et, he replied. Mr Shurland asked: When you were 13years-old in the eighth grade, you knew what you were doing was wrong? The witness replied: At that age, I did not know it was wrong because Mr Birbal was my teacher and I respected him as a teacher. Anything he asked me, I would do it. The witness said the sexual relationship with Birbal ended in 2008 when he was 19. When asked if Birbal was the only man he had had sex with, the witness said No. Mr Shurland then asked if he had embarked on a homosexual relationship before Birbal, again the witness said No. You approached Mr Birbal? Mr Shurland continued. You said I love you and he said I dont love you like that. The witness denied Mr Shurlands asser tions. Birbal, 48, from Trinidad, is charged with unnatural sexual intercourse with two minors under age 18. The trial continues today. Major hotelier backs BTC sale to Cable & Wireless FROM page one S UPPORT: A dam Stewart Cheryl Grant-Bethell had no chance to defend herself against law job report FROM page one FROM page one BTC papers to go public Second student testifies in teacher sex case FROM page one


SECTIONB WEDNESDAY, JANUARY 19, 2011 THETRIBUNE $4. 68 $4. 51 $4. 69The information contained is from a third party and The Tribune can not be held responsible for errors and/or omission from the daily report.$ $4.70 $4.72 $4.61 [Learn more at] BAHAMASNassau:242.356.9801 Freeport:242.351.3010BARBADOSSt.Michael:246.435.1955 PersonalPensionPlanStrong investment performanceFlexible StructureCompetitive feesEfcient administration By NEIL HARTNELL Tribune Business Editor E nhanced reporting requirements could give the B ahamian financial services industry the opportunity to g o after US clients once again, a leading accountant said yesterday, pointing out that marginal, per client com pliance costs would be sub s tantially reduced by upfront systems investment. L awrence Lewis, the Deloitte & Touche ( Bahamas) partner, speaking to Tribune Business after addressing a Bahamas Financial Services Board (BFSB seminar on the issue, said the US Foreign Account Tax Compliance Act (FATCA provisions would create a regulatory level playing field s ince all jurisdictions would be required to adhere to its stipulations. Warning that FATCA, which is set to be implemented from January 2013, would have a reasonably large impact on Bahamasbased financial institution from a compliance and Know Your Customer perspective, Mr Lewis pointed out that in every storm an opportunity beckoned for this nations financial ser vices industry. One of the things I did raise with the [seminar] group is that I personally think there Tighter reporting opens US market up for Bahamas Accountant says new US compliance demands create chance to go after US clients again via lower per client costs* Requirements to have reasonably large impact on Bahamian financial services* Two-year window in which to comply LAWRENCELEWIS SEE page 4B By NEIL HARTNELL Tribune Business Editor City Markets principal yes terday said the 10 per cent price reductions implemented in most product categories since its new 78 per cent majority owner took control last November should help to mitigate the anticipat-e d rise in food prices this year. M ark Finlayson, also head of Bahamas Supermarkets largest shareholder, TransCITY MARKETS CUTS PRICES 10% IN MOST AREAS Chain hopes reductions will mitigate impact of rising food, fuel prices* Adds that no proper rhyme or reason or margin consistency under previous owner which may have been applying Trinidad-style prices SEE page 4B By NEIL HARTNELL Tribune Business Editor The Government will inject $39 million into a Feeder Trust to cover the deficit in the existing Bahamas Telecommunications Company (BTC draft copy of the Memorandum of Understanding (MoU the companys sale reveals, with the $210 million purchase price also subject to potential change. Sources close to the Government-appointed privatisation committee yesterday confirmed to Tribune Business that the MoU leaked to the opposition Progressive Liberal Party (PLP signed with Cable & Wireless Communications (CWC the sale of the 51 per cent BTC stake. Although the MoU is non-binding, and the Government, privatisation committee and CWC remain locked in negotiations over the final details of the sale, Tribune Business was told that the document deals with the main issues surrounding BTCs sale. The PLP yesterday attacked the MoU, criticising it for barring Bahamian ownership opportunities, linking this to the Bahamas for Bahamians campaign, and the ongoing debate about economic empowerment and ownership opportunities for Bahamians. Yet sources close to the BTC privatisation committee told Tribune Business that the MoU was a very protective document for the Government, containing a host of veto rights for it. CWC declined to comment. $39m to cover BTCs pension fund deficit SEE page 4B DECEMBER SOFT-OPENING: The Elizabeth on Bay Marketplace & Marina. By NEIL HARTNELL T ribune Business Editor Despite total investment costs having risen from a projected $12 million to $14 mil l ion, one of the principals behind the Elizabeth on Bay d evelopment yesterday said it would be an anchor for a part o f Bay Street thats been derelict, with a grand opening tentatively scheduled for midMarch. Charles Klonaris, who together with his two brothers has renovated and transformed the former Moses Plaza on Bay Street, told Tribune Business t hat only four retail spaces in Elizabeth on Bay remained available, some 10 stores and a Mediterranean restaurant having already secured their spot. With four of the 10 retailer still fitting out their interiors, Mr Klonaris said he had pen cilled in a mid-March date for a grand opening, looking to this into when the 200-seat Mediterranean-style restaurant, Blu, overlooking Nassau Harbour would be in operation. Explaining that he and his brothers had been very dis cerning in ensuring the right retail, restaurant and product mix was present at Elizabeth on Bay, Mr Klonaris told Tri bune Business: We have four spaces left. We always get calls, but we have to be very selective. There is a lot of interest in stores coming in, but what were looking for is diversity in product lines. We will not pick anything; we want to get diverse stores for the plaza. Apart from the Courtyard Cafe, existing tenants for Elizabeth on Bay include a pharmacy with a clinic, Lacoste, Urban Myth and La Molina. Others set to be ready within a month include the likes of Lickety Split, Haagen Dasz and Seacret Design, while an eight$14m retail anchor for derelict Bay Street area SEE page 2B By ALISON LOWE B usiness Reporter A newly-merged Caribbean Airlines and Air J amaica will seek to form a pan-Caribbean airline conglomerate with Bahamasaira nd others, an Air Jamaica executive said yesterday, suggesting the move wouldl ead to more "economical" travel for people in the r egion. Will Rogers, Air Jamaica's chief of sales, saidt hat he expects the merged company, now valued at $ 500 million, will begin negotiations "in the next three to four months" withB ahamasair and Liat in the Caribbean in the "hope of forming a conglomerate "We realise the success of the airline will depend on those sorts of alliances," Mr R ogers said. He was speaking at a press conference held by Air Jamaica at theH ilton's Rose Hall Resort in Montego Bay yesterday. S uch a move would "have mutual benefit for Bahamasair and Air Jamaica", sug-g ested Mr Rogers. "I think the movement of passengers between the islands will bem ade a lot easier and a lot more economical." T he announcement comes as Caribbean Airlines takes over the operation of theA ir Jamaica brand, having bought all but 16 per cent o f the former Jamaican national carrier from the Jamaican government lasty ear. In the wake of the deal, the company has determined that it will expand the routes both airlines service including extending Air Jamaica's service into Lond on, UK, with three weekly flights starting in July of this year. A ir Jamaica will continue to fly routes into and out of M ontego Bay and Kingston, Jamaica, to New York, Philadelphia, Toronto, FortL auderdale and Miami in the US, and Nassau. Caribbean Airlines. with itsh ub in Port of Spain, Trinidad, flies to New York, P hiladelphia, Toronto, Fort Lauderdale and Miami in North America; St Maarten,A ntigua, Barbados, Grenada, Tobago and Kingston in t he Caribbean; Guyana, Suriname and Venezuela in South America T he suggestion of a conglomerate being formed that Regional airline talks with Bahamasair eyed SEE page 3B By ALISON LOWE Business Reporter Executives at both the Sheraton Nassau Beach Resort and the Wyndham Nassau Resort and Crystal Palace Casino yesterday said they were looking for ward to "marginal" growth in 2011, a senior executive at the former reporting that the management company does not fear visitors being turned off by con struction activity associated with the Baha Mar development. Andrew Neubauer, director of sales and mar keting for the Sheraton Nassau Beach Resort, said Starwood Hotels, which manages the hotel, believes the Baha Mar development the $2.6 billion redevelopment of the Cable Beach area which is set to turn transform the strip into a vacation "metropolis", according to its developer is "nothing Cable Beach resorts eye mar ginal growth SEE page 3B


BUSINESS PAGE 2B, WEDNESDAY, JANUARY 19, 2011 THE TRIBUNE TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM When Bahamas Realty chief executive L arry Roberts told Silvina Andrews she was the real estate company's top performer for a second time, Ms Andrews threw her head back and laughed. "I thought he was either kidding or teasing m e," she said. To Ms Andrews, the reality of being number one in a competitive environment liker eal estate in a year that was anything but record-setting was, well, about as foreign as t he thought of missing one of her son's baseball games. A nd that, says Mr Roberts, could just be the secret to her success. "It might be the unassuming nature, gent le touch and steady dedication that make Silvina such a winner," said Mr Roberts. She's hard-working, but soft and sincere. Those who deal with her don't want to go to anyone else. They trust her." M s Andrews, who has been with Bahamas Realty for all her 14 years in the industry, was the top performer in 2007, just before the US housing bubble burst, triggering falling prices and harder-to-access financ-i ng. Upside T he downturn, she said, had an upside, leading to the construction of gated com munities that were no longer just for the w ealthy and offering greater accessibility to water view properties for middle income families. "It's still about personal relationships," said Ms Andrews. A few years ago, shef ound the perfect home for a client who arrived to head a major international bank. She has obtained the bank's work ever since, building on the relationship and making the process of relocation for new staffers ass eamless as possible, often going beyond locating a suitable rental to handling utilities and advising on the best schools, doctors and fastest pizza delivery. Providing infor-m ation is not a problem. The challenge arises when a little online research has made others from abroad instant experts. But that same online appeal has blurred the lines between real estate companies. It's not like it was when there were five big companies," Ms Andrews said. "There are hundreds of agents and associates offer-i ng virtual tours of property and every year, expectations increase, browsing becomes m ore sophisticated. Just when you think you've got some fantastic new feature, you start blogging, and then when you start blog-g ing, it turns out everyone is and you have to find the key words to make an impact. It empowers the buyer and keeps us on our toes." Technology is so critical to real estate that t he one course Ms Andrews took recently to keep abreast of trends was online marketing, an 80-hour course she took online. Her firm, Bahamas Realty, recently celebrated 60 years and merged with ParadiseS ales & Rentals. rust is critical for top realty performer KRyS Global, the accounting firm specialising in corpo rate asset recovery, insolven cy, forensic accounting and business advisory services, has named Tangela Russell as manager of its Bahamas office. She joins the firm with more than 10 years of accounting experience, most recently holding the positions of regional head of accounting at a Bahamas-based private bank and manager at a major accounting firm. She is a licensed Certified Public Accountant, and holds a Trust Diploma from the Bahamas Institute of Financial Services. Mrs Russells employment comes at a time when the firm has undergone a rebranding exercise that included a name change, from Krys Rahming & Associates to KRyS Global. The new name indicates the firms recent growth and expansion to additional inter national markets, and the need for a single identity across its offices. We are extremely pleased to welcome Tangela to the KRyS Global team. She brings a broad base of accounting experience to the firm, as well as financial expertise combined with a sol id reputation, said Edmund Rahming, managing director. KRyS Global has 40 staff who work from offices in four jurisdictions: the Cayman Islands, the British Virgin Islands, the Bahamas and Bermuda. They specialise in providing corporate recovery, fraud investigation and forensic accounting, money laundering investigations, business advisory services, consulting and regulatory compliance services. Accounting firm names manager The Know Your Customer Essentials session at the Intern ational Business & Finance Summit (IBFS next week will look at the s ources of funds for owners of c apital, and review their busin ess success and trends/transit ions across targeted markets. Panelists will also discuss h ow choices are made with regard to the internationalf inancial services industry and, in particular, the factors i nvolved in choosing international versus domestic products a nd services. Some of the questions that will be answeredi nclude: How do owners of capital a pproach estate planning, and what are the popular planning s tructures being deployed? What has been, and will be, c hallenged? What are the cultural n uances that make or break a relationship with an external relationship manager? Presenters will include W illiam Heuseler, chief wealth planning officer and head of w ealth planning international at Ita Private Bank Internat ional; Pedro Ramrez, found ing partner of Turanzas, Bravo & Ambrosi; and Joseph A. F ield, senior international partner and senior resident partner Asia at Withers Bergman L LP. They will examine cust omer essentials by region: A sia, Latin America, and Canad a. Bahamas Financial Services B oard chief executive and executive director, Wendy C. War-r en, said IBFSs business devel opment focus makes it imperat ive that industry stakeholders "know" who the customers are across regions and sectors. "Understanding what our c ustomers want and how that i mpacts how we do business is critical", she said. "Basically,t his plays a huge role in our strategy development and mark eting initiatives." IBFS 2011 takes place at the R adisson, Our Lucaya, from January 21-23. M r Heuseler is a tax, trust and estate planning attorney with over 15 years of experience dealing with high-net worth clients. Prior to Ita, he w orked at UBS AG as country coordinator Brazil offshore p latform; at Smith Barney-Cit igroup as a wealth planner; at S afra Group as the head of the legal and trust affairs division; and Citco Group as a trust offic er. Mr Ramrez hails from one of the top tax law firms in Mexi co. During his professional c areer he has developed subs tantial expertise in the repres entation of ultra high net worth individuals and multinat ional entities. He is highly involved in estate and wealthp lanning. Based in Hong Kong, Mr F ield represents international families on structuring their a ffairs and estate planning, and advises financial institutionsc oncerning the establishment o f international trust companies and a wide variety of finan-c ial services, particularly with respect to life insurance. H e is editor of Private Wealth Management, a direc-t ory for the Private Banking industry; editor of Investing t hrough Life Insurance, a book for the International Tax Planning Association (ITPA of Planning and Administration of Offshore and Onshore Trusts ( with Simon Jennings and Anthony Travers), a book for S TEP; and co-author of Asset Protection Trusts with Milton G rundy and John Briggs. WILLIAMHEUSELER JOEFIELD PEDRORAMIREZ FINANCIAL SUMMIT DUE DILIGENCE FOCUS TOPPERFORMER: Silvina Andrews. It might be the unassum i ng nature, gentle touch and steady dedication that makeS ilvina such a winner She's hard-working, but soft and sincere. Those who deal with h er don't want to go to anyone else. They trust her." Larry Roberts strong Bahamian group is taking one of the larger stores to create different Bahamian artifacts and authentic products, ranging from upscale straw bags to jewellery and shell designs. Mr Klonaris said he was still organising Elizabeth on Bays marina, which will have a major tour operator presence, helping to drive more foot traffic to the upscale shopping plaza. By next month well have that in order, he added. Although it depends on the size of the boats, were looking for around 10 spaces. Among those committed to taking berths are Sunshine Tours, with its catamaran, and the 104foot Illusion, the luxury yacht that goes on charters to the Exumas. While it was still early, Mr Klonaris said more consumer traffic was coming to the downtown Bay Street area where Elizabeth on Bay was located. Asked about the end product, he said: I am very satisfied. It took a little longer than anticipated, but so far we are very happy with the quality of the stores, the product mix, and night time in the Courtyard Cafe is very beautiful, very relaxing. I think what youre going to see is a really spectacular plaza that anchors a part of Bay Street thats been derelict. Boost Mr Klonaris said a further boost would come with the relocation of the container shipping facilities from downtown Nassau to Arawak Cay, something that was anticipated to happen in March/April 2011. This would remove much traf fic from Bay Street, aiding revitalisation efforts, and freeing up 30-40 acres on the waterfront for redevelopment. Apart from the restaurant, retail, hotel and entertainment facilities, Mr Klonaris said a key requirement was the provision of condos to entice Bahamians to come back and live in downtown Nassau, making it a -hour city. $14m retail anchor for derelict Bay Street area FROM page 1B


BUSINESS THE TRIBUNE WEDNESDAY, JANUARY 19, 2011, PAGE 3B TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM may include Bahamasair was previously raised in 2009 by former Trinidad and Tobago Prime Minister Patrick Manning, who said his government would be looking at entering negotiations with LIAT after the deal between the Trinidadian Caribbean Airlines (CAL consummated, in an effort to setting the stage for the creation of one regional car rier comprising CAL, Air J amaica, LIAT and possibly Bahamasair. However, prior to Mr Roger's comments yesterday, such discussions had gone quiet after the change of government in Trinidad and Tobago in 2010, in which Mr Manning's party lost to Kamla Persad-Bissessar's People's Partnership coalition. Asked about the time frame in which CAL/AirJ amaica would like to see a conglomeration with Liat and Bahamasair, Mr Rogers said: "Discussions will start this year. Certainly this year you will see a different airline which will be far reaching as far as development is concerned in the Caribbean and beyond." Regional airline talks with Bahamasair eyed FROM page 1B but a positive. "We don't see it really impacting the Sheraton. We think we'll be insulated from (the construction activity right on the beach, all the guestrooms face the beach or havea view of the water, so we feel very positive about it," said Mr Neubauer. He spoke with Tribune Business at the Caribbean Marketplace 2011, a massive tourism trade show taking place in Montego Bay, Jamaica, this week. Hoteliers, attraction operators, restaurants, transporation companies and touristb oards meet with each other and tour operators to do industry deals at the event, as well as with the media, to highlight new developments with regard to their products. M r Neubauer said the Sheraton Nassau Beach, which underwent a $90 million renovation in 2007, "did well yearover-year" in 2010, although the final outcome remained" slightly below expectations". The Starwood executive said that in 2011, the company e xpects there to be "marginal growth" in revenue coming from the hotel, with weddings, honeymoons and family business a key driver. Honeymoons "Our destination honeymoons and weddings continue to be strong, family getaways, family travel. That's why wea re going to re-launch Love Your Family in 2011. We have an aquaventure package that's just been introduced at the r esort to give you an upgraded experience. Children 12 and under can dine free, and there's a $50 food and beverage credit. We also guarantee connecting rooms for families, ift hey bring grandparents, children's friends etc, so that's a really big plus for them," said Mr Neubauer. M eanwhile, Mary DiPasquale, director of leisure sales for the Wyndham Nassau Resort and Crystal Palace Casino, the property neighbouring the Sheraton on Cable Beach,s aid the company "achieved (its' 2010. As for the coming year, Ms DiPasquale said: "It's still a little hard because the pacing is (towardsl ast minute bookings at the property now, but so far from what I can tell we are pacing ahead at this point, over 2010." Cable Beach resorts eye marginal growth F ROM page 1B Sandals chief executive has backed the Governments selection of Cable & Wireless Communications (CWC its regional subsidiary, LIME, to acquire a 51 per cent stake in the state-o wned telecommunications company, s aying it could be expected "to do great things for BTC." A dam Stewart, head of the resort b rand that operates 20 hotels in the region, including three in The Bahamas one on Cable Beach and two in Exum a called LIME "a valuable partner". "The hospitality industry expects and deserves the best in communication services our guests look forward to communicating back home to share t heir experiences and demand speed, r eliability and stability," said Mr Stewart. Its an important part of the guest experience. LIME has been a valuable partner to Sandals across the Caribbean we have been able to improve the efficiencies of the Sandals group and provide greater service to our guests because of LIME.I expectt o see LIME do great things for BTC, a nd especially for the hospitality industry in the Bahamas, and believe they h ave the right track record for the job." T he Government announced on December 2 that it had entered into a Memorandum of Understanding with C able & Wireless Communications for the proposed sale of 51 per cent of BTCs shares. Both parties are in the due diligence stage now and a business plan is being developed. A closing date for the deal h as not been announced but is expecte d in the first quarter of the year. Meantime, while stopping short of e ndorsing the Government's selection of a strategic partner to prepare BTC for competition, executive vice-president of the Bahamas Hotel Association, Frank Comito, said the hotel industry welcomed improvements int elecommunications. Affordable, reliable internet and phone service is essential to our indus-t rys competitiveness, and our ability to g enerate business and service our customers," said Mr Comito. "On the business side, it underpins our financial transactions and our comm unications with buyers and supplie rs.Our customers, whether they are travelling on business or pleasure, expect to stay connected at a reasona ble price.Its no longer an option, it's r equired to be competitive," he added. BTC is one of the last governmento wned telecom monopolies in the world. Sandals chief backs CWC to acquire BTC NATIONAL AIRLINE: A Bahamasair plane on the tarmac. INSIGHT F or the stories behind the news, read Insight on Mondays CHIP CUTTER, AP Business Writers MATTHEW CRAFT, AP Business Writers NEW YORK Boeing Co. and Caterpillar Inc. led stocks higher on Tuesday, pushing the Dow Jones industrial average to its highest close since June 2008. Boeing rose 3.4 percent after reporting that it expects to deliver its long-awaited 787 jet in the third quarter. Caterpillar gained 2.8 percent. The two companies contributed more than half of the Dow's 50 point rise. Indexes swung between gains and losses earlier in the day. Apple Inc. weighed on the Nasdaq composite index after the company announced that its CEO, Steve Jobs, was taking another medical leave. Apple fell 2.2 percent to $340.65. After the market closed, Apple said its net income soared 78 percent in the holiday quarter. The company sold 16 million iPhones, an 86 percent increase from the year before, and about a million more iPads than analysts expected. Banks dropped after Citigroup Inc. reported earnings that fell short of analysts' fore casts. Citigroup fell 6.4 percent. Bank of America lost 1.6 percent. Delta dropped 8.2 percent after winter storms caused its earn ings to come in lower than investors had expected. The Dow rose 50.55 points, or 0.4 per cent, to close at 11,837.93. The Dow has already gained 2.2 percent this year as optimism builds about the economy. The index rose 11 percent last year, or 14 percent including dividends. The Standard & Poor's 500 index edged up 1.78, or 0.1 percent, to close at 1,295.02. The Nasdaq rose 10.55, or 0.4 percent, to 2,765.85. European markets rose after Greece raised $865 million in another suc cessful bond auction. That allayed concerns about Europe's financial system, which have been a drag on U.S. markets. Bond prices fell, pushing their yields higher. The yield on the 10-year Treasury note rose to 3.37 percent from 3.32 percent late Friday. U.S. markets were closed Monday for the Martin Luther King Jr. holiday. Rising stocks outpaced falling ones by a small margin on the New York Stock Exchange. Consolidated volume was 5.2 bil lion shares. USSTOCKS Stocks shrug off bad earnings reports


BUSINESS PAGE 4B, WEDNESDAY, JANUARY 19, 2011 THE TRIBUNE TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM 3/$17(&+1,&,$1 could be an opportunity for the Bahamian financial services industry to go after US clients, Mr Lewis told Tribune Business. If youre in the FATCA regime and invest in all the regulatory architecture compliance, infrastructure, people and processes while that will not take you all the way in terms of reporting for US clients, it will take you substantially along thew ay. Whereas before weve said the cost of compliance is so much greater for US clients, that incremental cost of compliance for US persons will be substantially reduced by the initial investment in systems/processes, thus reducing marginal costs. So now you have got an opportunity to go after the US market, Mr Lewis explained to Tribune Business. I think this one, to me, starts to open the US market back up for us. Were on a level playing field. President Obama signed FATCA into law in March 2010, but the accompanying regulations and guidelines have yet to be issued. The reporting period and requirements are now expected to take effect in January 2013, thus giving the Bahamian financial services industry two years to prepare for even more onerous compliance demands. Warning that the devil is always in the detail, Mr Lewis, who serves as Deloitte & Touches FATCA programme head for the Bahamas, said that while it was complementary to the existing Qualified Intermediary/Qualified Jurisdiction initiative, this would sit on top of that. FATCA, he explained, focused on reporting all accounts held by US-connected persons to the Internal Revenue Service (IRS institutions to identify and disclose US beneficial facility owners. Failure to do so will result in sanctions, such as the application of 30 per cent and up withholding taxes on US-sourced income. It casts a pretty wide net, Mr Lewis explained, and makes almost every financial institution a de facto arm of the IRS, certainly in terms of the information gathering process. It forces them into being part of the regime and providing information on US account holders. He added that FATCA also captures information on cash flows transiting the US on what are deemed withholdable payments, such as interest, dividends and the gross proceeds of any sales. The penalties for non-compliance were pretty hefty. Warning that the two years to FATCA compliance would go by pretty quickly for many Bahamian financial institutions unless they were prepared, Mr Lewis said of the likely effects on this nation: Some people may differ in their assessment, butI think its going to have a reasonably large impact. While the Bahamas largely shied away from US clients, many private banks and trust companies saying they were not interested in US clients because of the high compliance efforts and risk associated with taking them on, Mr Lewis said FAT-CA would thrust increased compliance, reporting and new systems on them in any event. I think theres going to be a reasonably high impact from this in the sense that any organisation in the FATCA regime is going to have to revisit KYC information across all existing clients, determine whether theyre US persons or not. If they are US persons, you have to gather additional information around them. Depending on the type of entity, you may have to peel the onion back to who are the underlying ben-e ficial owners, and that can be a complex effort. If you look at our KYC, that took 10 years, and some insti tutions still have accounts not determined [ownership] from the KYC perspective. Now, FATCA was asking Bahamian institutions to do more, but in a two-year window, not 10. While many clients may say they had no need to interact with the US markets and financial system, Mr Lewis said this did not hold from a practical standpoint, since 50 per cent of the worlds securities and payments originated from there. FATCA, he added, was all about extending the IRS reach and ensuring tax compliance by all US citizens. The way it is structured impacts everyone in all jurisdictions, Mr Lewis said, saying it made it less attractive to hold non-compliant accounts and facilities. The US was determined to identify US-owned accounts and ensure it was getting the correct tax payments on them, achieving total transparency. Tighter reporting opens US market up for Bahamas F ROM page 1B Island Traders, told Tribune Business that he had found no proper rhyme or reason in the nine-store supermarket chains pricing policy upon taking over. He added that there was no consistency in the margins applied to many products, and suggested that previous majority owner, BSL Holdings, may have applied Trinidad-style margins familiar to its operating partner, Neal & Massy, that were foreign to the Bahamas. Analysing the impact increased trans portation costs, plus rises in the cost of key food staples, would have on City Markets business and consumer prices, Mr Finlayson said the supermarket chains major US suppliers were already hedging in a bid to hold costs stable. Acknowledging that he expected a slight increase in City Markets prices as a result, with costs for corn and soybean key inputs to feeds used in the dairy, poultry, meat and eggs industries hitting 30-month highs last week, Mr Finlayson said: We were just talking to our chief supplier today, and theyre hedging a little bit. In this kind of market, it will be a few weeks to a month at this time in terms of them keeping the prices stable. I think there will be some increase. Agreeing with an interview given by City Markets chief competitor, SuperValue owner and president Rupert Roberts, within the past week, Mr Fin layson added: I am concerned, like him, about the price of fuel going up, but I dont think the prices are going to go up as high as they did a few years ago. In August 2008, global oil prices peaked at $147 per barrel, but the City Markets principal told Tribune Business: I think were seeing a blip on the horizon. I dont think thats going to happen again. I think what were seeing right now is a blip on the radar, and its not going to cause as big a problem as it did in 2008. Noting that there were things both inside and outside the companys control, Mr Finlayson said City Markets would continue to focus on better customer service and a better shopping experience. I think if we keep doing what were doing, I think we will gain more market share as time goes on, no matter what food prices will be, he added. We are talking to our suppliers. We dont have any information on what prices are going to be, but they have hedged a bit, because it keeps prices stable. Former Burns House executive Ed Wilchinski had been hired as City Markets chief administrative officer over theC hristmas holiday to ensure the supermarket chain maintained proper pricing. There was no rhyme or reason to pricing at City Markets, Mr Finlayson said. Prices have actually come down over the last month or so, and we still have a bit of work to do. In some categories, they came down at least 10 per cent. Using the example of cornflakes, Mr Finlayson said both Kelloggs and the in-store brand variety were priced at about $5.19 when Trans-Island Traders took over, something that made absolutely no sense. There was no consistency in the mar gins; no proper rhyme or reason, Mr Finlayson said. Kelloggs Cornflakes hada margin that was too high in the first place, if judged by US standards. The inhouse brands price, meanwhile, had been reduced to $3.20, both brands enjoying the same margin. Mr Finlayson said the same issue was discovered with the McArthurs orange juice brand, which was priced much high er than all other brands at $7.99 per five gallon bottle. It was now at $5.99 after the proper margin had been applied. We have brought our prices down to what they should be. Our predecessors may have been applying margins in Trinidad that were foreign to our market. I think youre going to see prices overall come down, so the impact of the price rises will not be as bad as you think.I think, overall, the consumer will see a rise, but a slight rise. What were doing is lowering the prices in the market in the first place, which can only be good for the consumer. CIT Y MARKETS CUTS PRICES 10% IN MOST AREAS FROM page 1B MARK FINLAYSON $39m to cover BTCs pension fund deficit Apart from revealing that the $210 million purchase price was dependent on the cost of the [BTC] workforce restructuring, and these assumptions will be checked by CWC in its due diligence, o ther interesting aspects in the MoU were: The plan for BTCs voluntary workforce restructuring, which is likely to involve a 30 per cent or 400 person reduction in BTCs staffing levels, was supposed to have been completed on January7 2011. The restructuring will start as soon as practicable following completion of the sale to CWC, and be completed by the first anniversary of privatisation. No further formal downsizing will happen during the first two years after privatisation. The bidding process for a second cellular licence in the Bahamas will not be launched before the third anniversary of the privatisations conclusion. That is unlikely to please D igicel, Cable Bahamas and other aspirants, because it means that, at the earliest, bidding on a second cellular licence will not start until February 2014. And, given that it will likely take two years to award the licence and for the winner to set-up, proper competition in this key market may not arrive until February 2016 at earliest five years away. And a third cellular licence will not be issued until five years post-privatisation. If the Government breaches these undertakings, it will be subject to a sliding scale of fines. These are $100 million for a breach in the first year of privatisation, dropping to $80 million in the second year, $40 million in the third, and $20 million in the fourth and fifth years. BTCs Board post-privatisation will have seven directors, four nominated by CWC and three by the Government. CWC will appoint the chair, and the Government, the deputy chairman. The MoU says: Each shareholder in the company will have the right to appoint one director for every 15 perc ent of the shares held by it. H owever, notwithstanding this, the Government will have the right to appoint two directors when it stake is between 24-30 per cent, and CWC can nominate up to four directors if its holding is between 50-75 per cent. CWC will have the majority on all Board committees, and be responsible for finding the chief executive, chief operating officer and finance director, all subject to Board ratification. The MoU said: Although the day-to-day administration, operation and management of the company will remain substantially in the Bahamas, the parties acknowledge that certain aspects will be provided through CWCs regional offices. When it came to CWCs LIME subsidiary providing regional support services, fees incurred will be passed on to BTC at cost, with a 9.5 per cent margin charged on LIME employees wage and salary costs. The same applied to services provided by LIME for special projects, with a 6 per cent margin placed on its employees wages and salaries. And brand, intellectual property, know-how and entrepreneurial services provided by LIME would incur a fixed fee equal to 2 per cent ofB TCs gross revenues. On pensions, the existing BTC defined benefit plan will be closed to new entrants post-privatisation, with a new defined contribution scheme set up within six months. BTC will pay contributions equivalent to 10 per cent of staff salaries into the new scheme. With the existing scheme, BTC will pay 10 per cent contributions for members, pay its administrative costs and compensate the scheme for any funding strain caused by the workforce restructuring. The Government will pay $39 million into a feeder trust to cover the existing BTC pension schemes liability, something the PLP charged meant that the net price the G overnment will receive for the 51 per cent stake amounts to $178 million $210 million plus $7 million in Stamp Taxes, minus the purchase price. CWC will only be able to transfer its BTC shares without the Governments prior consent to a company that is either an established telecommunications company with substantial operations, or is a consortium that has a major telecoms operator as a leading shareholder with at least 20 per cent. A leading telecoms operator was defined as one with three international licences,o ne million total customers, or a market capitalisation of at least $750 million. The PLP said such thresholds prevented Bahamian entities from owning BTC, but a source close to the privatisation committee told Tribune Business it did not. The MoU, they said, simply meant that Bahamians, in partnership with a telecoms o perator, would have to seek government approval to buy. FROM page 1B JIM KUHNHENN, Associated Press WASHINGTON Chinese President Hu Jintao arrived Tuesday as President Barack Obama prepared to welcome him with a careful mix of firmness and warmth befitting the leader of a nation that is at once the largest U.S. rival and most important potential partner. Tensions over currency and trade policies, a search for common ground on national secu rity and U.S. finger wagging over Chinese internal governance and human rights will dominate the visit. But any edge in the talks will be softened by an unusual private White House dinner Tues day night between Hu and Obama, and a high-pomp state dinner Wednesday with all the trappings afforded to a world power. For Hu, that would be an accomplishment in itself. The United States has stiffened its position against China after initial entreaties from the Obama administration, and any images of a friendly welcome in the United States could serve to polish Hu's image at home and to soften the American public's suspicions about China. Hu received red carpet treatment upon landing Tuesday afternoon at a wet Andrews Air Force Base, where he was greeted by Vice President Joe Biden and a military color guard. For Obama, the visit represents an opportunity to carry out the engagement he promised would be a trademark of his foreign policy. But Obama also is under pressure to show resolve as a range of interest groups, from business leaders to human rights advocates, press the administration to stand up to Beijing. The White House on Tuesday stressed that Obama did not intend to avoid difficult subjects. "Whether we're dealing with economic discussions; whether we're dealing with those in the security realm; or whether we're doing those with human rights, I think this is an argument that we have and we'll continue to make to the Chinese and push them to do better," White House spokesman Robert Gibbs said. A key moment will come Wednesday when Obama and Hu appear at a brief news conference. The two will take four questions, two from U.S. journalists and two from Chinese reporters. The White House insisted that the two leaders face reporters. In China, Hu's public appearances always are under con trolled circumstances that do not lend themselves to spontaneity. Hu took questions at a 2005 news conference with President George W. Bush in Beijing, but he refused to do so when Obama visited in 2009. When it comes to economic discussions, U.S. companies have been longtime critics of Chinese policies that kept its currency low relative to the dollar. A low-priced yuan makes Chinese products cheaper in the United States and U.S. products more expensive in China. Two senators, Democrat Sherrod Brown of Ohio and Republican Olympia Snowe of Maine, sent a letter Tuesday to Treasury Secretary Timothy Geithner informing him that they plan to introduce legislation that would penalize China if it should continues to manipulate its currency. With the yuan rising 3.5 per cent against the dollar since June, the currency dispute has in part given way to U.S. com plaints about theft of intellectual property and barriers to Chinese contracts for U.S. firms. In a letter to Obama on Tuesday, a coalition of financial organizations urged the president to prod the Chinese to open their financial services sector to greater competition. Agenda for visit by Hu includes trade and security


BUSINESS THE TRIBUNE WEDNESDAY, JANUARY 19, 2011, PAGE 5B TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM PALLAVI GOGOI, AP Business Writer NEW YORK Citigroup Inc. was profitable in the fourth quarter, but only after reaching into reserves that it no longer needed for loan losses. Revenues from trading stocks and bonds fell sharply. The New York bank reported fourth-quarter income of $1.3 billion Tuesday, or 4 cents a share, falling s hort of the 7 cents expected by analysts surveyed by FactSet. Citi's stock fell 6 percent to $4.82 in heavy trading. The results were an improvement from the loss of $7.6 billion, or 33 cents a share, reported for the same quarter of last year. Revenue was $18.4 billion compared to $5.4 billion a year earlier. Last year's revenue took a hit when the company paid backpart of the bailout money it received from the government. F or the year, Citigroup earned $10.6 billion on revenue of $86.6 billion. It was the first full year of profits for the bank since 2007, when CEO Vikram Pandit took over the top job. T he bank's losses from lending fell 11 percent from the previous quarter to $6.9 billion as more of its customers became able to keepup with their payments. It was the sixth straight quarter of declining lossesf rom lending. The lower loss es allowed the bank to release $2.3 billion from reserves it set aside for bad loans. Bond trading revenues fell 32 percent to $2.3 billion. Bond prices fell sharply in the fourth quarter and fixed i ncome trading was volatile as Ireland asked its European neighbors for a bailout. Citigroup's revenues from stock trading fell 24 percent to $808 million. Citi, which does far more business overseas than other large U.S. banks, benefited from growth in its international divisions. International consumer lending grew 3 percent, and corporate lending rose 4 per cent. Revenues related to investment banking advisory services rose 25 percent to $1.2 billion on higher under writing revenues, mainly from new stock issues in Asia. Hurting Citi's U.S. credit card cus tomers were still hurting, but less than before. Losses from credit card lending fell 10 per cent from the previous quarter to $1.8 billion. Accounts that were 90 days delinquent or more fell to $1.67 billion from $1.88 bil lion. Fewer mortgage customers were late in their monthly payments. The portion of Citi's home loans that were 90 days over due fell to 2.10 percent to 2.70 percent. The bank set aside $4.8 billion for future losses, the lowest level since the second quarter of 2007. The bank was able to set aside less money in reserve since the economy has been improving. Citigroup was one of the largest recipients of bailout funds during the financial crisis of 2008. The government sold the last of its stake in the bank in December for a profit of $12 billion. "2010 was a year full of milestones and was critical for the turnaround of this institution," CEO Vikram Pandit said in a statement. Pandit still has plenty of work ahead of him. At the end of the 2010, Citi had set aside $40.7 billion or 6.3 percent of its total loans, for future losses. By comparison, its larger rival JP Morgan Chase & Co. set aside $32 billion, or 4.5 percent of its total loans, last year. That means Citi has more troubled loans than some of its peers. JPMorgan and Goldman Sachs are expected to start increasing their dividends to shareholders starting in the second quarter, but Pandit said that Citi will likely resume paying higher dividends in 2012. S EATTLE B oeing pushed back deliveries of its new 787 a gain on Tuesday, meaning that the soonest it will arrive is July. T he company had most recently said that deliveries would begin next month, nearly three years l ate, but an electrical fire on a plane in November halted flight testing and another delay has been w idely anticipated. Boeing said it expects to deliver the plane duri ng the third quarter, which would be between J uly and the end of September. The new schedule has been padded in the event that anythinge lse goes wrong, the company said. Investors cheered the news, sending shares up m ore than 3 percent. But Kenneth Herbert, an analyst for Wed b ush, said he's "skeptical given the company's poor track record on delivering on milestone d ates." The analyst said he believes engine problems will be the biggest hurdle in making the newest delivery date. He maintained his prediction that B oeing will make 24 of the planes this year and deliver 14 of them. Boeing resumed flight testing in December after making an interim software fix to address the Nov. 9 fire that forced an emergency landingi n Laredo, Texas, but those tests were not for the mandatory Federal Aviation Administration certification. On Monday, Boeing resumed 787 flight tests that are aimed at getting FAA certification. Thef ederal agency must certify aircraft before they can enter service, a milestone Boeing musta chieve before deliveries can begin. Even before the fire, however, production p roblems have led to repeated disruptions for jet, which made its first flight in December 2009. The company said it will provide more information on its financial forecast and deliveries during its earnings conference call on Jan. 26. The revised delivery date is not expected to havea material impact on Boeing's financial results for 2 010, the company said. Shares of Boeing Co. rose $2.21, or 3.2 percent, t o $72.28 in afternoon trading. JOSHUA FREED, AP Airlines Writer MINNEAPOLIS Delta and the other major airlines are paying more for jet fuel, which means travelers will soon pay more to fly. When it reported a fourth-quarter profit of $19 million on Tuesday, Delta said its fuel bill could rise by $1 billion this year, if oil prices stay where they are at about $92 a barrel. Delta's fuel bill rose 13 percent to $1.93 billion in the fourth quarter. Delta and other airlines have already raised fares as jet fuel prices have climbed, and Delta said it could dial back its growth plans as well, if necessary. Travelers will notice the fare increases first. Delta and United raised fares on Monday, with other airlines matching at least some of the increase, said Rick Seaney, CEO of By his count it's the fourth increase since December. He said the increases appeared to be $10 to $20 round trip, depending on the airline. Southwest, which often declines to match broad-based fare increases, has matched portions of the recent fare increases, and on Tuesday matched most of the latest increase by other airlines, Seaney said. South west carries more domestic passengers than any other airline, so its response to fare hikes by other airlines can determine whether those price increases stick. "I don't recall seeing Southwest, even in the height of runaway oil prices in 2008 match or initiate domestic airfare hikes in two successive weeks," Seaney said. (AP Photo/Elaine Thompson DELIVERYDELAY: The sixth Boeing 787 test plane moves past other Boeing aircraft while moving into position for take off on its first flight Monday, Oct. 4, 2010, from Paine Field, in Everett, Wash. The plane, the final in the test plane group and the second using General Electric engines, was piloted by Capt. Christine K. Walsh and first officer Bill Roberson. The other four flight test 787s have Rolls-Royce Trent 1000 engines. The plane was expected to fly to Moses Lake, Wash, and then to Boeing Field in Seattle. Citigroup dips into reserves to record fourth quarter profit (AP Photo/Mary Altaffer Q4 PROFIT: Citi CEO Vikram Pandit at the new high-tech banking center in in New York Thursday, Dec. 16, 2010. Boeing delays delivery of new 787 until at least July INTERNATIONAL BUSINESS (AP Photo/Ted S. Warren CHECKING IN: Travelers check-in at a Delta Air Lines counter at Seattle-Tacoma International Airport, Monday, Dec. 27, 2010, in Seattle. Delta and other airlines had flights to and from the New York area cancelled or otherwise affected by winter weather. Delta Air Lines r eports $19 million 4Q profit E ILEEN AJ CONNELLY, AP Personal Finance Writer N EW YORK Fewer credit card accounts slipped into default in Decem ber than in any other month of 2010, and signs point to further improvement ahead. A ll six of the biggest card issuers Tuesday posted their l owest rates for charge-offs, or accounts written off as uncollectible. Citibank, which has had some of the highest chargeoff rates over the past two years, posted the biggest decline. It wrote off 8.34 per c ent of its card balances in December, down from 9.4 perc ent in November and well below the high of 11.55 percent posted in March. D iscover, Chase and Capital One also reported substantial d eclines. While the rates of balances companies wrote off declined consistently throughout the year, they remain high by historical standards. "There are some good i mprovements," said Mike Dean, a managing director with F itch Ratings. Fitch's chargeoff index, which tracks the industry, remains near record levels, he said. "We've seen some better numbers there, but nothing to say, 'Wow!'" Dean said he expects chargeo ff rates to continue improving, but noted that the defaults a re "highly correlated" to the unemployment rate. With the jobless rate is forec ast to remain high throughout the year, it is difficult to pred ict when charge-offs will return to normal levels, said Jeff Hibbs, an analyst with Moody's Investors Service. Industry wide, the charge-off rate peaked in the second quar ter of last year at 10.37 percento f balances, according to the latest data from the Federal R eserve. In the two years prior to the recession, it averaged 3.82 percent, Fed records show. Credit card debt has been dropping the last two years, reflecting a combination of fac tors, including individuals pay i ng down balances and credit card companies cutting the a mount of available credit and writing off what they can't collect. Fewer credit card accounts slip into default


BUSINESS PAGE 6B, WEDNESDAY, JANUARY 19, 2011 THE TRIBUNE TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM JESSICA MINTZ, AP Technology Writer Shares of Apple Inc. fell modestly Tuesday f ollowing the company's disclosure that Steve Jobs, the CEO who transformed the niche com p uter maker into the most-envied consumerelectronics brand today, is taking another medical leave of absence. Analysts believe the company Jobs shepherd ed from garage startup to a $65 billion technolog y trendsetter is in good hands with the current slate of talented executives even as Apple, n ow the Silicon Valley player to beat, faces increasing competition from Google Inc. and others. Investors appeared to agree. Although shares fell nearly 7 percent in Frankfurt Monday, when markets in the U.S. were closed, Apple lost only $7.17, or 2 percent, to $341.31 in midday trading Tuesday. Earlier Tuesday, stock traded as low as $326. In the last decade, Jobs, 55, has survived a rare but curable form of pancreatic cancer and u ndergone a liver transplant. The news that he will again step back from his day-to-day role r aises serious questions about the CEO's health. Investors have pinned much of their faith in the company on Jobs himself, sending shares tumbling on every bit of news or rumor of his ailing health. That's because Jobs is an industry oracle o f sorts, inventing new products he knows consumers will want even before they realize it. He i s also known as a demanding and hands-on leader who is involved in even the smallest details o f product development. In a note to employees, Jobs said he will cont inue as CEO and will be involved in major deci sions. Chief Operating Officer Tim Cook will be responsible for all day-to-day operations. For now, very little is known about Jobs' current condition. Apple did not provide any information beyond the six-sentence note announcing his leave, leaving unanswered questions about whether the CEO is acutely ill, whether the leave is related to his 2009 liver transplant or whether he is at home or in a hospital. N ICHOLAS PAPHITIS, Associated Press ATHENS, Greece Greece's Socialist government insisted Tuesday it was not seeking a repayment exten sion of its overall debt, hours after the country's deputy prime minister expressed surprise support for the idea. The government which held a successful treasury bill auction Tuesday played d own the televised remarks by T heodoros Pangalos, who b acked an extension beyond t he euro110 billion ($146 bil l ion) in international rescue l oans that are keeping the coun t ry afloat. "Naturally, there is no issue o f extending the repayment of G reece's overall debt," gove rnment spokesman George Petalotis said. "There is a decision in prin ciple on extension of the repayment of the euro110 billion, and the government is not dis cussing anything beyond that," Petalotis said, insisting that Pangalos had voiced "a pers onal opinion." Greece remains frozen out o f bond markets by high inter est rates, and is struggling to regain market credibility despite having its debt now assigned non-investment or j unk status by all three major ratings agencies. O n Tuesday, Greece raised euro650 million ($865 million t hrough a heavily oversub scribed treasury bill auction its second this month. The 13w eek bills were sold at a yield o f 4.10 percent, holding the rate s table since November, the public debt management agency said. In an interview broadcast early Tuesday, Pangalos said he favored a broad extension i nstead of opting for a possible h aircut or a reduction in the a mount of money owed. He t old private Skai television: You might ask me: 'isn't that r estructuring?' It is, technically, but in the sense that there is never any doubt of our obliga tion to pay back the debt, and to pay back everything we owe." Greek political analyst and publisher Giorgos Kyrtsos said Pangalos was simply stating ap osition that other politicians w ere reluctant to say in public. I think the extension of the o verall debt is mathematically c ertain ... Mr. Pangalos is a p olitician who takes the risk of expressing his opinion," Kyrtsos told the AP. "It's in the government's interest to imply this position, but not state it as its official position," Kyrtsos said. LONDON The euro rose to a one-month high against the dollar and European stocks rallied on hopes that eurozone nations are planning to strengthen and broaden their measures to fight the debt crisis. Britain's FTSE 100 closed up 1.2 percent, while Germany's DAX and the CAC-40 in Paris both rose 0.9 percent. ___ BRUSSELS Europe is taking advice from the U.S. on how to improve its bank stress tests, officials said, as the region tries to shore up its defenses against the debt crisis that has crippled the euro currency zone over the past year. The talks are part of an overhaul of the EU's crisis man agement strategy to prevent more expensive bailouts and avoid losing years of economic growth. Uncertainty over the wellbeing of Europe's banks has been central to the debt crisis. Expensive bank bailouts have stretched some states' budgets to breaking point, while governments' high debt loads have raised concern over the quality of their bonds, in turn held as capital buffers by big financial institutions. ___ WASHINGTON China, the biggest buyer of U.S. Treasury securities, reduced its holdings in November after four months of gains. China's holdings of Treasury debt dropped 1.2 percent to $895.6 billion, the Treasury Department said. The report comes just before a state visit to the U.S. by Chinese President Hu Jintao. Overall, foreign holdings of Treasury securities rose 0.9 percent to $4.35 trillion.T hat indicates that other nations still have an appetite for Treasury debt even as the U.S. government is running $1 trillion-plus annual budget deficits. ___ WASHINGTON U.S. companies have long demanded that China let its currency rise to make U.S. exports cheaper. But as President Hu Jintao visits Washington this week, U.S. companies are stressing other goals: Stopping the theft of intellectual property and get t ing a fair chance to win government contracts. No one expects any big breakthroughs. I nstead, many U.S. companies hold out hope that the meetings between Hu and President Barack Obama will make it easier to reach long-term solutions to the major trade disputes dividing the world's two largest economies. ___ TOKYO Asian trading was mixed. Japan's Nikkei 225 stock average closed up 0.2 percent, South Korea's Kospi dropped 0.2 percent, Australia's S&P/ASX 200 rose 0.8 percent and China's Shanghai Composite Index added 0.1 percent. Hong Kong's Hang Seng closed nearly unchanged. ___ PARIS The International Energy Agency said buoyant global economic growth and a cold winter in the Northern Hemisphere will underpin higher-than-expected oil demand this year. ___ BERLIN German investor confidence rose sharply amid hopes that global growth will remain healthy, while investment and private spending in Europe's biggest economy gained momentum, a survey showed. ___ TOKYO A record one-third of Japanese university students graduating this spring have not found jobs, underscoring dwindling career opportunities for young people even as com panies post robust profits. ___ BEIJING A Chinese trade mission signed $600 million in deals with U.S. companies ahead of President Hu Jintao's visit to Washington this week and a separate delegation will look into other opportunities. ___ ATHENS, Greece Greece's Socialist government insisted it was not seeking a repayment extension of its overall debt, hours after the country's deputy prime minister expressed surprise support for the idea. Greece remains frozen out of bond markets by high interest rates, and is struggling to regain market credibility despite having its debt now assigned non-investment or junk status by all three major ratings agencies. Earlier, the country passed a new market test in its struggle to overcome its debt crisis, raising 650 million euros ($865 million its second this month. ___ LONDON British inflation spiked higher than expected in December, to an annual 3.7 percent rate, due to rising consumer prices for food, fuels and air travel. ___ BEIJING Foreign direct investment in China weakened slightly in December but ended 2010 up strongly after falling the previous year amid the global crisis. ___ TORONTO Canada's central bank left its key interest rate unchanged at 1 percent. The Bank of Canada said the global economic recovery is proceeding at a somewhat faster pace than it had anticipated. ___ BEIJING China's rare earths exports grew 14.5 percent in the first 11 months of last year despite Beijing's decision to reduce sales of the exotic metals needed by makers of high-tech products. ___ LONDON Barclays bank was hit with a record fine of 7.7 million pounds ($12.3 million for giving poor advice to investors in a pair of funds, Britain's Financial Services Authority said. ___ CAIRO Arab leaders are pledging $2 billion to revamp the faltering economies across the region amid fears of protests over high unemployment, rising prices and rampant corruption, such as those that just brought down Tunisia's government. G LOBAL E CONOMIC N EWS A S SOCIATED P R ESS A look at economic developments and activity in major s tock markets around the world Tuesday: (AP Photo/ Petros Giannakouris PROTESTING: Protesters hold a banner which reads overturn in Greek as they demonstrate outside the Greek Parliament in Athens Tuesday, Jan 18, 2011. About 200 protesters backed by the ADEDY civil servants union took part in a rally in support protesting public transport workers who oppose plans by the Socialist government to radically restructure the loss-making state companies. AP Photo/Keystone/Georgios Kefalas) MAKINGAPOINT: The Jan. 10, 2011 file photo shows JeanClaude Trichet, president of the European Central Bank, at a press conference in Basel, Switzerland. Greece denies seeking repayment extension NEWSFROMAROUNDWORLD Apple shar es fall 2 pct with Jobs on medical leave INTERNATIONAL BUSINESS


MARK JEWELL, AP Personal Finance Writer B OSTON Investors are finally inching back into the stock market. But are they too late? W hile millions sought refuge in traditionally stable bonds over the past two years, they missed a more than 90 percent r ally in stocks. Suddenly bonds d on't look so safe, and some of the $11 trillion that Americans have parked in mutual funds is shifting back to stocks. A fter putting more than $570 billion into bonds over the past two years, mutual fund investors reversed course last f all, worried that the prospect o f rising interest rates and the growing deficits of state and local governments were bring-i ng bond prices down. In the last two months of 2 010, investors withdrew a net $23 billion from bond funds, a ccording to industry consult ant Strategic Insight. At the same time, corporate b ottom lines are improving. So investors are finally starting to t ake another look at stocks after being burned in the 2008 financial crisis and scared by the market's "flash crash" single-day plunge in May. Most investors have been in a capital-preservation men-t ality, because they saw so much of their net worth d estroyed in the bear market," says Chris Jones, chief investm ent officer with J.P. Morgan Asset Management. Few have fully recovered since the stock market began sliding from its historic peak in O ctober 2007. The Standard & Poor's 500 index is 17 percent s hy of that level, despite recent gains. T he momentum has shifted, and now, with a couple of years of solid market performance, many risk-averse investors may be ready to get back in. But there are cautionary voices. The economic recovery is still f ragile in the eyes of Tom Roseen, an analyst with fund-t racker Lipper Inc. "I wouldn't be surprised if w e have a little bit of a pull back over the next couple months, as people re-evaluate their portfolios and take a look at how much the market has g ained," he says. Until recently, investors got a d ecent return from their play-itsafe strategy. Diversified bond f unds gained an average of 10.8 percent last year, beating their average annual gain of 6.2 per cent over the past five years, according to Morningstar. S till, nearly all types of bonds lost money in the fourth quart er, with government bonds taking the biggest hit. This downturn helped fuel a shift into stocks most notably abroad. Mutual funds buying overseas stocks took in a net $72 billion last year, while investors pulled a net $49 bil lion out of funds buying American stocks. There are signs that U.S. stocks are becoming more attractive to mutual fund investors. For one week last month, domestic stock funds took in more money than investors pulled out. The last time that had happened was in April. And the pace of withdrawals is slowing. Market optimism is also improving. For 19 consecutive weeks, surveys by the American Association of Individual Investors have shown a greaterthan-average belief that stock prices will rise. The last time the surveys had such a long streak of bullish sentiment was in late 2004. Yet the movement of money because of troubles with municipal bonds offers a reminder of how important it is for investors to remain even-keeled. "You simply have got to put aside the emotion and believe in what you are taught, to buy low and sell high," says Carol Clemens, a 64-year-old retiree from Edmond, Okla. She scored big when she snapped up shares of Ford for around $2 when it appeared U.S. automakers might go under a couple of years ago. The stock now trades above $18, thanks to smart moves by Ford's management and a strengthening economy. Clemens' portfolio is about two-thirds stocks and one-third bonds, and she's recently been trimming her stake in bonds. "If you put money into b onds, there is a nice cushion when the stock market goes down," Clemens says. "But I'm retired, and we're looking fora n income stream. We're not g etting it from bonds," she says, calling current yields "abysmal." Belief that the economic r ecovery is on track has recently driven up long-term interestr ates from record lows. This has led investors to pull out of lowy ielding Treasurys. Rising rates also are making it costlier for state and local governments to b orrow. Fear of further rate increases also is causing pricesf or many previously issued bonds to drop. That's because i nvestors will be able to buy newly issued bonds paying higher interest. So as bond prices decline, investors like Clemens will be l ooking for income from stocks that pay solid dividends. Anda s other investors step back into stocks, they may be questioning w hether they're making the classic mistake of buying in at the market's peak. The S&P 500 is up 23 percent since Sept. 1, and at its highest point since August 2008. It finished 2010 with a r eturn of 15 percent including dividends, more than twice the g ain for a comparable bond index. J.P. Morgan's Jones expects further stock gains in 2011, with a breakout year for growth stocks of companies whose earnings rapidly appreciate think, w hose stock price has tripled s ince March 2009. But Jones doesn't think many investors are willing to get back into those richly priced stocks. Investors are incredibly s hell-shocked," Jones says, "and they're not willing to pay for growth until they see it." Yet many market pros are p redicting another year of double-digit gains. They point toa n abundance of positive eco nomic indicators: factories c ranking up production, hiring activity picking up, growing cor porate investment in technolog y. Consumers also are more confident, thanks in part to ther ecent extension of the Bushera tax cuts and a new cut in t he Social Security payroll tax. Sooner or later, investors will put their money where it's gain ing the most, predicts Bob Doll, chief stock strategist at BlackR ock, the world's biggest money management company.I nvestors tend to chase rather than anticipate returns. He e xpects investors will embrace stock funds over bonds, ending what he calls an era of fear. Stocks may post their third year of double-digit percentage gains in a row, Doll says. That hasn't happened since the late 1 990s. And if the market behaves like it has coming out o f previous recessions, the S&P 500 could rise nearly 12 percent this year. That's the average gain the index made in the one year immediately following this point in the economic cycle, a year and a half after the end of a recession. BUSINESS THE TRIBUNE WEDNESDAY, JANUARY 19, 2011, PAGE 7B TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM CAROLE FELDMAN, Associated Press WASHINGTON Is your tax bill too high? You may be able to cut it and save for your retirement at the same time. You can make a contribution to an IRA until April 18, this year's filing deadline, and deduct the amount on your 2010 taxes. The maximum deduction is $5,000 or $6,000 for those 50 and older. Those 70? and older are not eligible to make contributions. There are also limits, based on adjusted gross income, on how much you can deduct from your taxes ifyou are covered by a retirement plan at work. But income limits that had prevented some taxpayers from rolling over a traditional IRA to a Roth IRA were removed starting in 2010. Contributions to a tradition al IRA are generally tax-free, but the distributions are taxed. In a Roth IRA, the contributions may not be deducted from your taxable income, but the distributions, principal and income, generally are not taxable when you withdraw the money. For both, there are penalties for early withdrawal. If you converted to a Roth IRA last year, the amount of the conversion must be reported on your 2010 return using Form 8606. The resulting income is subject to tax, but you have a choice on when to declare it for income tax purposes. You can include all of it as income on your 2010 return or defer it, declaring half in 2011 and the other half in 2012. Mark Luscombe, principal tax analyst at CCH, a provider of tax, accounting and audit information, said the choice was more of an issue before Congress extended the Bush tax cuts for another two years. "With rates being equal, you're probably better off postpon ing," he said. However, for some it might be better to declare all the income from the conversion in 2010. For example, "if they know that their income is going to go up and that might put them in a higher bracket. Even though officially the rates are the same, your individual circumstances might not be," Luscombe said. People who withdrew money from retirement accounts last year could find themselves with bigger tax bills. Any money withdrawn from a non-Roth IRA or 401(k declared as income. If people withdrew that money before they turned 59?, they also have to pay an additional 10 percent penalty, except for certain circumstances. "It rarely makes sense to do that, especially for normal nonemergency situations," said Bill Smith, managing director in the CBIZ MHM National Tax Office. Investors' return to US stocks could be too late PERSONALFINANCE: TAX AND MUTUAL FUNDS C AROLE FELDMAN, Associated Press W ASHINGTON Did you buy energy-efficient windows for your home last year? You can only take the energy efficiency credit if they were installed by Dec.3 1. That's just one of the details that could trip up t axpayers filing 2010 returns. Want to take the first-time home buyer credit o n your taxes? If you bought your house after April 30, or didn't have a binding contract by t hat time, you're probably out of luck. Was closing delayed? Depending on how long, you might not be eligible. But some taxpayers have an extra year to buy a home. Those serving outside the United States a s members of the Foreign Service, the uniformed services, including the military, or the intellig ence community have until April 30, 2011, to buy a new house and qualify for the credit. O ne more thing: The first generation of the new home buyer's credit was actually an interestfree loan. If you claimed that credit on your 2008 taxes, you have to start paying it back this year. If you took the full value of the credit, you'll owe $ 500 this year. "It might catch people unaware," said Barb ara Weltman, author of tax guides for J.K. Lasser. I f you deducted the first $2,400 of your unemployment benefits last year, be aware that you c an't do it again this time around. Congress did n't extend that tax benefit. Some experts advise taxpayers to seek help preparing their returns, either from a profes sional tax preparer or by using tax preparation s oftware, especially with the late changes Con gress made to the tax law. Some benefits weree xtended; others were allowed to lapse. One source of information is the Internal Rev e nue Service's tax guide for individuals, Publi cation 17. Running over 200 pages, it's filled with information on credits and deductions, and how to figure your tax and file your return. "There's so much going on this year and it's c onfusing," said Kathy Pickering, executive direc tor of H&R Block's Tax Institute. "It really isn'tt he year to go it alone." Take the energy credit. Taxpayers may qualify for a credit of 30 percent, or a maximum $1,500, for energy improvements made to their homes. They can include new windows, doors, insulation, and certain air conditioning, heating or hot water systems. The improvements must be expected to remain in use for at least five years and meet certain energy efficiency requirements. How do you know if they meet the requirements? In most cases, you have to rely on the contractor or the manufacturer to tell you. There's another catch. The energy efficient product must have been installed before the end of the year to qualify for the credit. "Purchasing something at the hardware store and putting it in the garage for installation later won't do it," said Mark Luscombe, principal tax analyst at CCH, a provider of tax, accounting and audit information. The home buyer credit had different incarnations. The first, taken as a credit, was the loan for first-time home buyers. That was later changed to make it a true credit, and a provision was added for long-time home owners. But the maximum c redit differed for first-time home buyers and people who already had owned a home, a maxi m um $8,000 for the former, $6,500 for the latter. If the purchase price exceeds $800,000, you can n ot claim either credit. So how do you know whether you had the loan or the true credit? Most people know the year in which they bought their home and can figure it out that way, said Terry Lemons, chief spokesman for the IRS. If you used tax preparation software and rolled o ver your data from year to year, it also lets you know which you took. O ther things that could trip folks up: Charitable deductions. You'll need a bank record, such as a cancelled check or a receipt, even for the smallest donation. That means that if you gave $1 in cash to the Salvation Army bell ringer over the Christmas holidays, you can't claim a deduction without a receipt. For donations of motor vehicles, get a completed Form 1098-C or similar statement from the organization and attach it to your return. Out-of-pocket expenses for teachers. Congress restored the deduction of up to $250 for teachers. It applies only to full-time teachers from kindergarten through high school. Conversion of traditional IRAs to Roth IRAs. You'll have to decide whether to include the value of the conversion as income for 2010, or split it over two years, 2011 and 2012. One more thing: For this year only, forget that April 15 is synonymous with tax day. Because of the Emancipation Day holiday in the District of Columbia, the deadline for submitting tax returns is April 18 for everyone, including those who don't live in the nation's capital. (AP Photo/Seth Perlman, File TAXINGTIME: In this Aug. 23, 2010 file photo a home is seen for sale in Springfield, Ill. This years tax season will look a lot like last years, but with a few sweeteners added. Most of the tax changes put in place in 2009 to spur the economy remained in effect in 2010, even though the recession was officially declared over. (AP Photo/Richard Drew, file GUT-WRENCHING: In this May 25, 2010 file photo, specialist Michael Pistillo, left, and traders work on the floor of the New York Stock Exchange. At first glance, it looks like the stock market had a good year. The Dow Jones industrials are up 10 percent, and the Standard & Poors 500 index, 12 percent. But the numbers mask the fact that 2010 was at times gut-wrenching. And individual investors only started showing signs of returning to stock at years end. Some credits, deductions could trip up taxpayers (AP Photo/Mary Ann Chastain, File ENERGY EFFICIENT: In this Oct. 29, 2008, file pho to Richard Hucks, and Demetrius Rumph, left, install energy efficient windows in a home in West Columbia, S.C. Time remains to contribute to IRA, save on taxes


BUSINESS PAGE 8B, WEDNESDAY, JANUARY 19, 2011 THE TRIBUNE TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM 5 2wk-Hi52wk-LowSecurit y P revious CloseToday's CloseChangeDaily Vol.EPS $Div $P/EYield 1.260.97AML Foods Limited1. 10.759.67Bahamas Property Fund10.6310.630.000.0130.200817.71.88% 6 .184.50Bank of Bahamas4.904.900.000.1530.10032.02.04% 0.580.18Benchmark0.180.180.00-0.8770.000N/M0.00% 3.492.70Bahamas Waste2.702.700.000.1680.09016.13.33% 2.152.14Fidelity Bank2. 12.509.62Cable Bahamas10.2110.210.00801.0500.3109.73.04% 2.842.36Colina Holdings2.402.400.000.7810.0403.11.67% 7.005.40Commonwealth Bank (S1)6.856.850.000.4220.26016.23.80% 3 .651.63Consolidated Water BDRs2.102.07-0.030.1110.04518.62.17% 2.551.60Doctor's Hospital1.601.600.000.1070.11015.06.88% 6 .995.94Famguard6. 10.207.23Finco6.516.510.000.2870.52022.77.99% 11.408.77FirstCaribbean Bank9.399.390.000.6450.35014.63.73% 5.513.75Focol (S)5.475.470.000.3660.21014.93.84% 1.001.00Focol Class B Preference1. 7 .405.00ICD Utilities7.407.400.000.0120.240616.73.24% 10.509.82J. S. Johnson9.829.820.000.8590.64011.46.52% 10.0010.00Premier Real Estate10.0010.000.000.9910.80010.18.00% 52wk-Hi52wk-LowSecuritySymbolLast SaleChangeDaily Vol. 99.4699.46Bahamas Note 6.95 (2029BAH2999.460.00 100.00100.00Fidelity Bank Note 17 (Series A) +FBB17100.000.00 100.00100.00Fidelity Bank Note 22 (Series B) +FBB22100.000.001 00.00100.00Fidelity Bank Note 13 (Series C) +FBB13100.000.00 100.00100.00Fidelity Bank Note 15 (Series D) +FBB15100.000.00 52wk Hi 52wk Low Symbol Bid$ Ask$ LastPrice DailyVol EPS$ Div$ P/E Yield B ISX LISTED & TRADED SECURITIES AS OF:7% Interest 7 %RoyalFidelity Merchant Bank & Trust Ltd. (Over-The-Counter Securities)29 May 2015 W WW.BISXBAHAMAS.COM | TELEPHONE:242-323-2330 | FACSIMILE: 242-323-232019 October 2022 Prime + 1.75% Prime + 1.75% 6.95%20 November 2029TUESDAY, 18 JANUARY 2011BISX ALL SHARE INDEX: CLOSE 1,480.04 | CHG -0.03 | %CHG 0.00 | YTD -19.47 | YTD % -1.30BISX LISTED DEBT SECURITIES (Bonds trade on a Percentage Pricing basis)Maturity 19 October 2017FINDEX: CLOSE 000.00 | YTD 00.00% | 2009 -12.31%3 0 May 2013 52wk Hi 52wk Low Symbol Bid $ Ask $ Last Price Daily Vol EPS $ Div $ P/E Yield 10.065.01Bahamas Supermarkets5.016.0114.00-2.9450.000N/M0.00% 0.550.40RND Holdings0.350.400.550.0010.000256.60.00% 41.0029.00ABDAB30.1331.5929.004.5400.0009.030.00% 0.550.40RND Holdings0.450.550.550.0020.000261.900.00% 52wk-Hi52wk-LowFund NameNAVYTD%Last 12 Months %NAV 3MTH 1.51221.4076CFAL Bond Fund1.51795.51%6.90%1.498004 2.94742.8300CFAL MSI Preferred Fund2.94742.10%2.09%2.918697 1.57431.4954CFAL Money Market Fund1.57404.44%4.44%1.555464 3.20252.8522Royal Fidelity Bahamas G & I Fund2.720212.72%4.63% 13.638813.0484Royal Fidelity Prime Income Fund13.2825-0.63%-0.14% 114.3684101.6693CFAL Global Bond Fund114.36849.98%12.49%109.392860 106.552899.4177CFAL Global Equity Fund106.55284.75%7.18%100.779540 1.14151.0000FG Financial Preferred Income Fund1.14154.74%5.21% 1.11011.0000FG Financial Growth Fund1.11013.94%7.60% 1.14281.0000FG Financial Diversified Fund1.14284.78%5.90% 9.74859.1005Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 19.79504.85%5.45% 11.236110.0000Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 210.6417-1.20%0.50% 10.00009.1708Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 39.6635-3.37%-3.37% 8.16434.8105Royal Fidelity Int'l Fund Equities Sub Fund8.39798.82%8.82% BISX ALL SHARE INDEX 19 Dec 02 = 1,000.00YIELD last 12 month dividends divided by closing price 52wk-Hi Highest closing price in last 52 weeksBid $ Buying price of Colina and Fidelity 52wk-Low Lowest closing price in last 52 weeksAsk $ Selling price of Colina and fidelity Previous Close Previous day's weighted price for daily volumeLast Price Last traded over-the-counter price Today's Close Current day's weighted price for daily volumeWeekly Vol. Trading volume of the prior week Change Change in closing price from day to dayEPS $ A company's reported earnings per share for the last 12 mths Daily Vol. Number of total shares traded todayNAV Net Asset Value DIV $ Dividends per share paid in the last 12 monthsN/MNot Meaningful P/E Closing price divided by the last 12 month earningsFINDEX The Fidelity Bahamas Stock Index. January 1, 1994 = 100 (S) 4-for-1 Stock Split Effective Date 8/8/2007 (S1) 3-for-1 Stock Split Effective Date 7/11/200730-Nov-10BISX Listed Mutual FundsNAV Date 30-Nov-10 30-Nov-10 30-Nov-10CFAL Securities Ltd. (Over-The-Counter Securities)TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-752530-Nov-10 30-Sep-10 31-Dec-10 31-Dec-10 31-Dec-10MARKET TERMS30-Nov-10 NAV 6MTH 1.475244 2.919946 1.538692 107.570619 105.776543 30-Jun-10 30-Nov-10 30-Nov-10 31-Dec-10 $/(;-26(3+RI&$50,&+($/ 52$'0&.,11(<'5,9(1$66$8%$+$0$6 081$(/RI %URDGZD\1HZ

ENTERTAINMENT THE TRIBUNE WEDNESDAY, JANUARY 19, 2011, PAGE 9B TO DISCUSS STORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM A family farm Y oud swear you were in Barbados or Trinidad instead of The Bahamas. The entrance to the farm was a track road with twelve-footh igh sugar cane growing on both sides, an echo of the p ast splendor of a failed venture. We are at the Lightbourn Family Farm in Abaco, a few miles south ofM arsh Harbour. Members of the A baco branch of the Horticultural Society of The Bahamas, led by President Anita Knowles, were on a field trip to visit the Lightbourn farm and were particularly interested in inten-sive vegetable farming techniques. O ur hosts are Michael and Jennifer L ightbourn, young, idealistic and comm itted. Michael left The Bahamas w ith his father when he was six years o ld to live in New York but his love of g rowing plants was engendered by s ummer visits to his grandmother, Barbara Lightbourn-Brennan, who h ad a 5.5-acre spread in British C olumbia. M ichael had seven years in the I nformation Technology business that took him to Florida. There he met and worked with Dean Dekker of Dekker Farms, Fort Pierce, and learned all about intensive farming t echniques. It was also there he met and fell in love with his wife Jennifer, w ho hails from New Jersey. T hey started the Lightbourn Fam ily Farm in June 2009 with assistance from Michaels father and uncle, and already four of their ten acres are prod ucing from seven fields. Part of the f arm is laid out with vegetable towers but there are conventional tilled areas w here the soil looked rich and black in the raised beds. T he towers are metal posts thread ing a series of white containers with a square cross section. The technique is called vertical hydroponics. Each con t ainer is set at 45 degrees laterally to the one below so the corners are exposed, and this is where the growing takes place. A row of towers produces a wall of vegetables: Collard greens, broccoli, arugula and other salad greens, lettuce, cucumbers and tomat oes. Michael explained that his grow ing medium is a commercial form of coir that he mixes with Perlite. At s ome time in the future he would invest in a small chipper and see if he could produce his own coir medium as there were plenty of coconuts in Abaco. Michael uses coir because it has a pH value of 7.0, a perfect balance between acid and alkaline. This isv ery important, Michael said, as t he pH determines how productive the soil can be. The pots in the towers are watered by a central gravity-fed drip system that has liquid fertiliser added in the correct amounts. The beauty of this system, Michael said of the towers, is that with five containers stackedv ertically and each bearing four plants, we are growing 20 plants where conventionally you could grow only one. Jennifer is in charge of a shade house that is used to propagate s eedlings. The market garden area a lso provides herbs and there were p lenty on their way, along with sweet peppers. I noticed a dozen or so pots w ith guinep seedlings, so the Light bourns may be orchard farming in the future. I t has long been noted that farming is more likely to be successful if valueadded items are produced. Jennifer had on sale jars of cucumber pickles labeled with the farms name and has also made (and sold sauce, hot pepper sauce and pesto. T he Lightbourn Family Farm obviously has some of the richest soil in Abaco, if not in all of The Bahamas. It i s part of what used to be the OwensI llinois concern that produced sugar cane in the late 1960s to the early 1 970s before going bust when the bottom of the sugar market fell out. This is the same area that the Chinese government is interested in developing. F arming is a precarious undertak ing. Conventional crops such as bananas, watermelons, cucumbers, peppers, tomatoes and onions often glut the market and bring low returns. Those who dare to be different stand t he best chance of success. Market g ardening is far more intense a project t han conventional farming because every day is a sowing and reaping day, a nd one breakdown could endanger several weeks labour. That said, the vertical hydroponics system means Michael and Jennifer are not behold-e n to the vagaries of the weather and h ave a great degree of control over their crops. I t was indeed a pleasure to share the dreams and efforts of a young couple determined to work hard and make a success of their undertaking. I w ish them well. J ust a few images of what we the Bahamas looked like 40...50...60... years in the past This is the exact location of the new straw market and the Ministry of Tourism building as it was in 1950. Flash B ack B Y ROLAND ROSE B y GARDENER JACK GREEN SCENE Above the Rest: A row of collard greens (above Lightbourn Family Farm is far morep roductive than in a regular garden. G r e en Thumb: Michael and Jennifer Lightbourn (right with their faithful dogs Bailey and Caina midst some conventionally-grown broccoli.


E NTERTAINMENT P AGE 10B, WEDNESDAY, JANUARY 19, 2011 THE TRIBUNE T O DISCUSS ST ORIES ON THIS PAGE LOG ON TO WWW.TRIBUNE242.COM T h e T r i b u n e THINGS 2 DO JANUARY 22 SATURDAY BIZET-TO-BROADWAY: NIGHT AT THE OPERA AT OLD FORT BAY CLUB In association with Elizabeth Covington and Cornelia Nihon, The Nassau Music Society presentsa night at the Opera at Old Fort Bay with a black tie dinner fol lowed by an enchanting evening of music by well-known Canadian opera singers. Under the distinguished patronage of His Excellen-cy Sir Arthur D Foulkes, this spe cial event is to raise funds for a scholarship programme to help young Bahamian singers train either at home or abroad. The show features: Gianna Corbisiero, Soprano; Alexander Dobson, Baritone; Keith Klassen, Tenor; Michael Mcmahon, Pianist; and Beverly Mcarthur, Mezzo Soprano. Cocktails at 6.30 pm, dinner at 7.30 pm and concert at 8.45 pm. The event is by reservation only. Contact Nassau Music Society at: JANUARY 22 SATURDAY DO IT BIG BLACK AND YELLOW/GOLD Warrior Sounds and Rydim Events present Do It Big Black and Yellow/Gold, a VIP Blackberry affair at Club 112. Music provid ed by Nassau's hottest DJs. Free food, drink specials and surprises all night! JANUARY 22 SATURDAY YMCMBs AQUARIUS Young Money Cash Money Billionaire's presents Aquarius, a birthday celebration for the entire YMCMB family. Music pro vided by Xtra Large International, DJ Payne, Father Marquis and Earthquake Sounds. Doors open 9pm. JANUARY 23 JANUARY 26 (ELEUTHERA CAPE ELEUTHERA WAHOO TOURNAMENT Cape Eleuthera hosts the 2011 Wahoo Tournament that offers three days of fun and excitement for fisherman both in the Bahamas and the states. Fee: $550/per boat, covers four participants, tourna ment t-shirts, opening night dinner, and awards banquet. Telephone: 888-270-9642 or 470-8242. JANUARY 27 THURSDAY THE HANSARD DEMOLITION OPENING RECEPTION The exhibition The Hansard Demolition, an intervention by Antonius Roberts, officially opens with an opening reception, 6pm9pm at the Central Bank of the Bahamas Art Gallery. Exhibition runs until February 18. JANUARY 27 THURSDAY ANNUAL EPIPHANY RECITAL FOR SOLO ORGAN Dr Sparkman Ferguson hosts the annual Epiphany Recital for solo organ, 7.45pm at Christ Church Cathedral. Come and hear famous renditions from Bah, Mendelssohn, Virgil Fox, Diane Bish, Franklin Ashdown, Vierne, Ball and Rogers and Hammerstein. Free admission. Donations accepted in aid for music library for St John's College. Telephone: 3232755. JANUARY 29 SATURDAY MS FULL FIGURED BAHAMAS LAUNCH AND COCKTAIL RECEPTION Join the contestants of the 5th annual Ms Full Figured Bahamas Pageant as they present themselves for the first time to the wider community, 7pm-9pm at the Cultural Gallery and Studio. Enjoy a night of great music, wine and hors d'ouvres. Cost: $20. T HE CAST and crew of the Bahamian film, From This Day For ward are excited as the days become closer to the debut of the unforgettable film. The event will be at The Hub, East Bay St with show times beginning at 1,5 and 7pm on Saturday January 22, 2011. In the past few years, The Bahamas has played host to what can be deemed as a renaissance period of local film making with the release of recent Bahamian films such as Rain and Children of God just to name a few. On Saturday, the team of No Budget production in association with Track Road theater will be releasing their comedic film From This Day Forward. The movie is a funny tale of two star crossed lovers Kenneth and Cherise, whom both are from different sides of the track or different sides of the Hill, they become drawn together due to their lust for each other. According to the Vendetta Group, the movie is shot in a mixed style of documentary and standard movie style which flows together seamlessly as family and friends of the young couple prepare for their wedding day. Going further, a film crew interviews and documents them as they get closer to the actual date, the ceremony and all else in between. Sparks then fly and social status collide as the wedding draws near. Just the mere preparation brings out the true essence of each character. Both Kenneth and Cherise are known to be very impulsive. Will there even be a marriage? Although all of the characters in this film are fictional the cast truly committed to the role making the whole feel like truly bizarre Bahamian wedding. The film is directed by first time director Tara Tecca Woodside who also wrote the story. She explains that the film was a short one because of the complete lack of a budget but the cast and crew all made it work like a big budget film. The film also stars Matthew Wildgoose and Salina Archer. Tickets for the debut will be on sale at a cost of five dollars, for more information please call 6767075, 424-5378 or 677-9616. The cast of From This Day Forward prepares for the official film debut LOS ANGELES Associated Press SETH Rogen's action tale "The Green Hornet" led the box office over the Martin Luther King Jr. Day weekend with $40 million. The top 20 movies at U.S. and Canadian theaters Friday through Monday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks inr elease, as compiled Tuesday by are: 1. "The Green Hornet," Sony, $ 40,012,543, 3,584 locations, $11,164 average, $40,012,543, one week. 2. "The Dilemma," Universal, $ 20,521,030, 2,940 locations, $6,980 average, $20,521,030, one week. 3. "True Grit," Paramount, $13,127,459, 3,459 locations, $3,795 average,$ 128,339,354, four weeks. 4. "The King's Speech," Weinstein Co., $11,271,166, 1,543 locations, $7,305 average, $46,795,025, eight weeks. 5. "Black Swan," Fox Searchlight, $10,151,762, 2,328 locations, $4,361 average, $75,020,120, seven weeks. 6. "Little Fockers," Universal, $8,535,495, 3 ,394 locations, $2,515 average, $135,621,520, four weeks. 7 "Yogi Bear," W arner Bros., $7,447,344, 2,702 locations, $2,756 average,$ 84,197,416, five weeks. 8. "Tron: Legacy," Disney, $7,258,954, 2,439 locations, $2,976 average, $158,497,550, five weeks. 9. "The Fighter," Paramount, $6,382,097, 2 ,414 locations, $2,644 average, $67,026,761, six weeks. 10. "Tangled, Disney, $5,638,656, 2,048 locations, $2,753 average, $182,666,695, eight weeks. 11. "Season of the Witch," Relativity Media, $5,416,042, 2,827 locations,$ 1,916 average, $18,913,782, two weeks. 12. "Country Strong," Sony Screen Gems, $4,381,249, 1,424 locations, $3,077 aver age, $13,986,383, four weeks. 13. "The Chronicles of Narnia: The Voy age of the Dawn Treader," Fox, $3,121,186, 1,704 locations, $1,832 aver a ge, $98,863,922, six weeks. 1 4. "Gulliver's Travels," F ox, $3,062,300, 1,666 locations, $1,838 average, $38,590,723, four weeks. 15. "The Tourist," Sony, $1,983,709, 1,420 locations, $1,397 average, $64,562,655, six weeks. 16. "Harry Potter and the Deathly Hallows: Part 1," Warner Bros., $1,749,077, 941 locations, $1,859 average, $290,153,345, nine weeks. 17. "Blue Valentine," Weinstein Co., $1,701,750, 230 locations, $7,399 average, $3,162,235, three weeks. 18. "Megamind," Paramount, $905,655, 341 locations, $2,656 average, $145,660,740, 11 weeks. 19. "The Heart Specialist," Freestyle, $581,516, 422 locations, $1,378 average, $581,516, one week. 20. "Yamla Pagla Deewana," Eros Inter national, $563,042, 84 locations, $6,703 average, $504,116, one week. 'Hornet' heads Hollywood's weekend with $40 million

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