The carnival pt 3: Show me the money

Sat, Jul 5th 2014, 10:58 AM

If the recent demands for a Freedom of Information Act are any indication, many Bahamians want answers to their questions - and good ones. This is especially so when the subject matter involves the public purse.
Since April 1, 2014, the day the prime minister disclosed the government's intention to provide the carnival with $9 million in funding for the event, the Bahamas National Festival Commission (BNFC) has touted the Bahamas Carnival as a solution to the country's unstable economy.
The government's expenditure on the event has prompted backlash. Since then, Major has clarified that the BNFC expects a significant portion of the $9 million to come from sponsorships "of probably around $5, $6 million". Still, many members of the public have expressed their unease and displeasure at the amount of public funding given to the Bahamas Carnival and the government's reliance on future revenue.

Much ado about numbers
Since the PM's announcement, claims have been made that the event will result in both a projected loss of $4 million and a positive economic spinoff of $27 million. Paul Major, chairman of the BNFC, has noted that the carnival should begin making a profit in its second year.
On Wednesday, June 17, Christie announced in the House of Assembly that the operating costs of the carnival would be $9 million, with revenue of $7.5 million and a shortfall of $1.5 million. He went on to repeat that there will be an economic impact of $27 million in the first year.
It is no wonder the public is confused. The lack of clear communication on the issue has left many asking the same questions, resulting in exasperation on both sides of the debate. Popular musician Kirkland "KB" Bodie and author and Creative Nassau team member Patricia Glinton-Meicholas have both asked the commission and government for solid proof of the carnival's economic benefits.
Major has expressed frustration at the situation, saying "I've tried to make the point on many talk shows that you do not measure an economic stimulus in terms of a P 'n' L (profit and loss) - which is a standard accounting statement. A stimulus isn't treated that way".

The trickle
Despite the seemingly continuous and confusing barrage of sums that comes up when the carnival is mentioned, Major continues to emphasize the carnival's impact as a financial impetus with what he and Roscoe Dames, technical consultant to the BNFC, term the "trickle-down effect".
The BNFC hopes that the carnival will bring together the people and groups it knows as "stakeholders" (those who stand to profit from the carnival, including airlines, taxi drivers and restaurant personnel) and entrepreneurs (the owners of road fever companies and carnival village stalls and suppliers of costume materials). According to Dames, this is so that the "layers of economic reach" affect self-employed Bahamians across the country.
Dames swears by the personal story of a woman in St. Lucia. "She makes U.S. $40,000 in a week selling grilled chicken on the side of the road," he said. According to Dames, this woman, whose children return home to help her set up a series of stalls during carnival time, is able to sustain herself for the year on her earnings. The consultant hopes to see that example relived many times over in The Bahamas.

The Family Islands' cash cow
A focal point of the BNFC is the Family Islands, which the commission hopes will benefit from both the collaboration between Road Fever companies and costume makers and the carnival's ecommerce website.
Family Island residents who participate in the carnival's business ventures are invited to sell their wares - which include bath salts from Bahamian salt ponds, straw products and other local goods - year-round on the ecommerce site.
The situation presents a slight hurdle: many Family Island residents do not have access to the Internet or computers. When asked whether the commission anticipated problems with a lack of technology in the out islands, Dames confirmed that it was an issue to be sorted out. According to the consultant, the commission plans to employ the services of a "small business administrator" as a liaison responsible for "products, the procurement and liaising with manufacturers of their products".
He hopes that the opportunity to sell products online will "bring people up that may be kind of lagging behind" with regard to modern technology and online marketing.
The use of indigenous materials
In addition to this glitch, the true economic benefit posed to residents of the Family Islands by Road Fever companies remains questionable. In an early interview with Dames, he maintained that the Bahamas Carnival costumes would be comprised of 30 percent indigenous materials. "So the layers of economic reach (are) not really just centered around visitors just coming to The Bahamas but the formation of the companies that will participate in the festival that produce the costumes that are 30 percent Bahamian-made products," he said.
However, responding to a later question on the share Family Island residents stand to receive from each costume's final sale, representatives from the commission threw the use of indigenous materials into doubt.
The representatives said: "We are encouraging designers to use 30 percent or more of local material which means that the purchase of these materials will provide them with an income from the products/labor." The statement implies that carnival companies have the discretion to choose whether their costumes will utilize Bahamian materials at all.
Payment for raw materials
Like most products sold today, Bahamas Carnival costumes will be sold to consumers at a marked-up price to cover the cost of production and to ensure that carnival companies make a profit. Major confirmed that prices for materials supplied by Family Island residents would be finalized ahead of the costumes' production.
"We will negotiate purchase prices with FI (Family Island) suppliers and they will be paid for materials supplied, and that's the end of it. That is how it works for all manufactures," he said.
This means that if a costume costs $100 to manufacture, and 30% of that costume is made of indigenous materials, a Family Island raw material supplier will receive $30 from that costume. The amount given to the supplier will not vary if the costume is then sold onto consumers at a significantly marked up price.
When questioned as to the price of basic straw plait, a Bahamas Carnival business seminar representative said that a yard of basic plait sells for approximately $1.
Nicole Burrows, an economist and regular columnist of The Nassau Guardian has recommended Family Island suppliers take further measures to protect their interests.
She would also support the establishment of a minimum price threshold for the supply of raw materials like coconut 'leather', shells, sisal and straw plait to carnival companies. Burrows recommends that the Family Island suppliers "band together as a co-op of sorts" and establish such a threshold that would cover their labor and shipping costs as well as ensure that they too make a profit from the carnival. She has recommended the employment of a "strong spokesperson or negotiator to represent them on this".

Too many questions, not enough answers
Even though the BNFC has promised to do "its utmost to try and educate the Bahamian public", the public still has an abundance of questions that ought to be addressed. Nicolette Bethel, head of the department, psychology, sociology and social work at The College of The Bahamas, asked for clarification on several matters including:
o

What happens if the festival in 2015 loses money, or does not do more than break even? Where will the investment come from for the 2016 festival?
o

What measurable outcomes have been identified, if any, to judge the success of the festival? What measures are being put in place to quantify the economic returns predicted?
o

How is the festival intended to benefit the creative industries in The Bahamas (rather than simply to fill hotel rooms)? Which creative industries are specifically targeted for primary benefits, and which for secondary benefits?
Though the dialogue is expected to continue until May 2 next year, many in the public hope the BNFC is prepared to provide definitive answers and welcome a constructive two-way exchange.

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