The Ministry of Finance has officially unveiled the details behind its $15 million road works relief plan and will begin accepting applications next week. In a statement released by the government, eligibility for benefits will be judged "on evidence that the subject business was in operation during the period of the road works and located on a corridor impacted by full or partial road closure". The release confirms what Guardian Business exclusively revealed on November 22, although it goes into more detail on how the process should work.
According to the Ministry of Finance, businesses can pick up applications as early as today, which are available at its head office at the Cecil Wallace-Whitfield Centre or on the government's website. Officials have promised a relatively quick turnaround, whereby applicants are given a "certificate of enrollment" within 10 working days. This paperwork outlines the nature and extent of the relief provided. That certificate must then be presented to the government agency before accessing the benefits. The document also includes new specifics on the benefits offered. It includes a 10-percent rebate on electricity bills for 18 months, but applicants cannot have arrears over 30 days.
The document also reveals a concession for businesses completely shut down as a result of the road works. "For clients of closed businesses, the government could assume 50 percent of the outstanding bill if the client pays in full the other 50 percent," it stated. That provision should come as welcomed news. In the past, the relief plan had been criticized for not offering any concessions to businesses that have shut their doors.
The government's plan also includes a "sliding scale" of discounts on air time at the government-funded Broadcasting Corporation of The Bahamas for advertisements and promotions lasting six months. Other aspects of the relief plan have been previously stated, including a 60-day deferment on customs duties for six months, the establishment of a competitive micro-loan facility at the Bahamas Development Bank (BDB) and a 50-percent rebate on business license fees and property tax.
However, all of these benefits have certain restrictions and caps. For example, the cumulative duty deferment amount must be limited to just $1,000 for businesses without a bond or letter of credit approved by customs. The maximum loan at the BDB must be $10,000 with a tenor of three years at an interest rate equivalent to the prime rate. "The loans would attract interest only for the first year and amortize over the remaining period," the statement reads.
The official release of the road works relief plan should raise some eyebrows among members of the business community, many of whom are actively opposed to the deal. A meeting is planned for this Friday at Super Value at Golden Gates to discuss the proposal and come up with a counter claim. That rebuttal will likely be worth far more than $15 million. Winston Rolle, the CEO of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), said the plan is based on what the government can afford.
The New Providence Road Improvement Project (NPRIP) is approximately $100 million over budget. It has served as a major drain on the public purse. Businesses argue that the government's fiscal position is cold comfort to what has universally been considered poor planning by construction crews and long delays to the works. Supporters of the plan, such as the BCCEC, also believe it will take far too long to assess the need among all businesses in the capital.
The government's relief package is efficient and something the country can afford, Rolle said yesterday. "The customs, for example, was designed for those who want to do things over Christmas holidays without having to cough up a lot of money to customs," he added. "But because they have muddied the water, it will be a challenge to make it happen in time." The application deadline is set for January 18 of next year.
Click here to read more at The Nassau Guardian
