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Bahamas: Cost of Living Soars For Bahamians
Related to country: Bahamas

Translations available in: English (original) | French | Spanish | Italian | German | Portuguese | Swedish | Russian | Dutch | Arabic

Cost of Living Soars
By Candia Dames -
Nassau, Bahamas:


Bahamians are paying more for everyday goods and services as the cost of living continues to climb amid weakening economic growth.

As an example, the Department of Statistics says in its latest consumer price index report that Grand Bahamians paid 21.19 percent more for electricity in the month of November compared to the previous month.

New Providence consumers also saw a continued increase in the Consumer Price Index during that period.

The report says the Consumer Price Index for Grand Bahama showed "a considerable increase" and the CPI for New Providence also "moved forward."

In New Providence, the major groups that helped moved the CPI forward were: clothing and footwear, medical care and health and food and beverages. Increases were also noted for transportation and communications, housing and other expenditures.

In Grand Bahama, the housing index was the leading group with an increase of 4.21 percent. This was followed by food and beverages and transportation and communications. Other major groups such as medical care and health, recreation and entertainment and other expenditure also showed an increase.

The report says the food and beverages index increased as items such as tomatoes rose 66.12 percent; limes/lemons, 28.58 percent; onions, 14.88 percent; grapes, 14.32 percent; bananas, 13.41 percent; lettuce, 12.41 percent; nuts, 9.10 percent; plantains, 6.98 percent; fresh peas and beans, 6.88 percent; canned and packaged soups, 6.16 percent and avocados, coconuts and other fresh fruits, 3.59 percent, also helped propel the index forward.

The increase noted in the transportation and communication index was attributed to the cost of gasoline, oil, grease and fluids increasing 1.94 percent.

In New Providence, consumers paid 33.40 percent more for tomatoes; 28.61 percent more for grapes; 20.05 percent more for lettuce; 19.10 percent more for avocados; 9.22 percent more for grapefruits; 8.82 percent more for pineapples; 7.42 percent more for sweet peppers; 4.35 percent more for bananas; 3.32 percent more for margarine; 3 percent more for butter and 2.58 percent more for canned fish and seafood.

New Providence consumers also paid 10.5 percent more for clothing and footwear, and 10.06 percent more for hospital and medical services.

HIGH ENERGY COSTS FUEL PRICE INCREASES

Economists and businesspeople have pointed to various factors that continue to impact everyday costs.

Dionisio D’Aguilar, president of the Chamber of Commerce, said the main reason for rising costs in 2007 was the substantial increase in energy prices.

He noted that at the beginning of 2007, the price of a barrel of oil was $55. It is now averaging $91 a barrel.

"During the course of 2007 the price of propane that Super Wash purchases increased by 32 percent," said Mr. D’Aguilar, who owns the popular laundry chain.

"We have not increased our prices during 2007, so we’re going to have to increase our prices. That’s just propane; that’s not electricity."

He noted that energy is a substantial component of many businesses and rising energy costs have forced businesses to increase prices.

"There’s nothing you can do about it," Mr. D’Aguilar said, "unless you switch to an alternative energy source, which takes time, which is not readily available and clearly the government, I think, now has to clearly consider allowing businesses to use alternative energy sources, for example, solar."

He pointed to Barbados, where the government made a conscious decision to motivate people to switch to solar energy, and provided incentives to encourage this.

Mr. D’Aguilar said dealing with the problem would require some innovate thinking.

SHIPPING COSTS UP

Mr. D’Aguilar also said energy costs are "permeating through the system."

"Shipping costs have gone up. When you land [goods] at the dock the equipment that they use at the dock requires gasoline, so that’s gone up," he said. "Your whole freight has gone up. A lot of raw materials require energy to create them into finished goods, so the prices have gone up. It’s just all the way down the supply chain; everything has gone up because energy is an important component of that cost."

Recently, Seaboard Marine announced that bunker tariffs increased this month as a direct result of crude oil price increases.

When he spoke with the Bahama Journal recently, Kristof Lingier, manager of Seaboard Marine Bahamas, stressed that the price of oil has an impact on everything.

"The plastic cups we drink in, the fuel we put in our car and the containers that are shipped in will all be affected by the increase in crude oil unfortunately. We are not talking about burning gallons; we are talking about burning tons, so you can imagine that the magnitude is completely different when it comes to actually running a ship," he said.

Over the past few months, numerous courier operators and other business proprietors have voiced concerns about the soaring price of fuel in the country – and businesspeople say the trickledown effect is being felt by consumers.

TOURISM STAKEHOLDERS FEEL IMPACT

Even tourism stakeholders are feeling the burden of rising energy costs.

As an example, Sandals Resorts said in a recent statement that after careful consideration and effective immediately, it will eliminate its recent energy surcharge.

"No one disputes the very real challenge of meeting escalating energy costs," said Gordon "Butch" Stewart, chairman of Sandals Resorts, "but we respect and highly value the opinion of our travel partners who are on the consumer front lines. We always want to do what is in their best interest and therefore after much discussion with them, we feel that now is not the time to enact this new policy."

According to Mr. Stewart, Sandals Resorts will rely further on its award-winning and ongoing sustainable tourism efforts to reduce energy use across all of its resorts.

CONSTRUCTION COSTS CLIMB

Like many other areas of the economy, the construction industry is also witnessing rising costs.

On December 4, Edward P. Williams, president of National Products Company Limited, advised that his company had been put on notice by its supplier of an increase in the price of cement as of January 1.

As a result, he wrote to customers, cement costs will increase.

Stephen Wrinkle, president of Bahamian Contractors’ Association (BCA), told the Bahama Journal that building costs are expected to continue to rise in the new year.

"It’s going to effect all of the construction trades, of course," Mr. Wrinkle said of the rising cement costs.

"I’m not sure what the retail difference is going to be at this juncture, but you know virtually every home in The Bahamas uses some concrete and cement…so it is going to have a net effect on the cost of construction."

28 December 2007

December 28, 2007 | 10:08 PM Comments  0 comments



Americans seek the authority to search Bahamian-registered vessels suspected of carrying weapons of mass destruction
Translations available in: English (original) | French | Spanish | Italian | German | Portuguese | Swedish | Russian | Dutch | Arabic

U.S. Pursues Security Initiative With Bahamas:
By Macushla N. Pinder -
nassau, Bahamas:


If all goes as planned, there could be an initiative in place that would give Americans the authority to search Bahamian-registered vessels suspected of carrying weapons of mass destruction.
According to U.S. Ambassador to The Bahamas Ned Siegel, the government is in the process of finalizing a Proliferation Security Initiative (PSI).

"We all know and read that keeping commercial air travelers safe is a high priority and we will continue to work with the security at the airports and seaports to make sure that the Bahamian authorities that are working those transit points are strengthened," he said.

"This initiative gives us the ability - with protocol - to board Bahamian registered ships around the world [where there is] information or intelligence [to suggest] that there may be weapons of mass destruction or materials to prevent them from even getting to port."

The Bahamas has the third largest ship registry in the world.

The Bahamas and the United States recently signed mega port and container security initiatives.

Mr. Siegel, who addressed members of the press during a roundtable Thursday, said he looks forward to continuing meetings with Cabinet ministers and listening to and understanding their priorities.

"We look forward to working with the government on the challenges ahead…I have indicated in my early meetings with the governor general, the prime minister and deputy prime minister, the United States’ desire to continue the very close and productive relationship we have had with The Bahamas," the ambassador said.

"I sense and I feel that because we have those shared values that the interest has been reciprocated from the government of The Bahamas. I have no doubt that in my short time here that our governments and people share a very deep, long and abiding commitment to the values of democracy, respect for rule of law and most importantly a deep commitment for human rights."

The Bahamas and the United States have long shared areas of mutual concern like protecting their citizens from drug trafficking, securing borders, supporting human rights, dealing with migrant smuggling as well as other criminal multi transnational organizations and potential terrorists’ threats.

"Unfortunately, in these times, we cannot put our heads in the sands. We need to think through where exposures are. We cannot allow ourselves to be a soft target," Mr. Siegel said.

"We have to understand that terrorism is a real problem and that we have to close the ways criminals exploit these smuggling routes."

During his tenure, Mr. Siegel said he also looks forward to bringing additional trade and investments to The Bahamas.

He said he is focused on economic prosperity, an achievement that no one person makes happen.

The ambassador added that while The Bahamas and the United States have had a good longstanding relationship, nothing should be taken for granted.

"It is with dialogue and understanding of what our commonalities and goals are. Our bilateral partnership is the best in the Western Hemisphere. It needs to continue to be worked on because we can take it even further," he said.

"We are people with the same desires and dreams. We want the best for our country, our family. We want to educate our children. We want to make sure that the next generation has better opportunities…It is about creating a people to people kinship…I have a large agenda, but it’s all doable."

Mr. Siegel’s relationship with The Bahamas goes as far back as 1975 when he and his family took their fist vacation to Freeport, Grand Bahama.

Since then, he has been back many times for family retreats and business meetings.

"We have wonderful fond memories of the times that we have been here…I feel now that I have come home…Without question The Bahamas is a beautiful and blessed country and I am honoured and privileged to be here as President Bush’s representative and the [representative of the] American people," Mr. Siegel said.

"In the short time I have been here, I have experienced a genuine and warm reception from everyone. I have had wonderful opportunities to meet some extraordinary Bahamians from all walks of life. It does not take long to savour the Bahamian culture."

In recent weeks, Mr. Siegel has met with various community leaders, among them Director of the Crisis Centre Dr. Sandra Dean-Patterson; Director of the National AIDS Programme Dr. Perry Gomez and President and Chair of the National Drug Council Williams Weeks.

"This is just the beginning. I think an ambassador’s role is to meet and work, to touch the fabric of a community and work with its leaders, citizens and NGOs to educate, to make aware and take everyone’s agenda to the next step," the ambassador said.

Mr. Siegel was born in New Jersey and trained as an attorney, but said his true love and passion is the real estate industry.

21 December 2007