400 jobs may go, warns store owner

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Super Value’s owner has warned that a 400 person lay-off may be “coming down the pipeline” across his various food retail interests unless the Government relents over its Value-Added Tax (VAT) proposal, plus Price Control and other recent tax increases.

Rupert Roberts told Tribune Business that unless the Government responded to the industry’s cries with “quick action”, his supermarket chain’s first potential move would be to assess the future of its smaller, inner-city stores.

Noting that these were losing an average of $20,000 per month, Mr Roberts also disclosed that his three-store Quality Supermarket chain - outlets taken over from the ruins of City Markets - had yet to reach the ‘black’.

The well-known businessman, a leading VAT opponent, added, though, that he felt it was “impossible” for the Government to meet its targeted July 1 implementation deadline for VAT with less than four months to go.

Arguing that he knew “diddly squat” about how to implement VAT from a practical and systems standpoint, Mr Roberts saved a special word for the Government’s beleaguered VAT coordinator, Ishmael Lightbourne.

The former PricewaterhouseCoopers (PwC) senior partner has come under substantial fire after it was revealed he has unpaid residential and commercial real property tax bills, and Mr Roberts said his problems had “thrown a monkey wrench” into the Government’s tax and fiscal reform plans.

The Super Value owner said the food retail/wholesale industry had received “nothing” from the Government in response to its concerns about recovering only a small portion of VAT ‘input’ tax payments, so the sector would “have to raise prices to compensate”.

“Our Business Licence is almost $4 million, $250,000 a month,” Mr Roberts told Tribune Business. “That’s what it increased to. From around $1.7 million, or from $1 million something, it went to $3.8 million.

“On electricity we pay $750,000 a month, three-quarters of a million per month or $9 million a year. That has to be absorbed in retail prices, and that’s why the group went to Price Control.” (see other article on Page 1B).

Referring to the net losses recorded by his BISX-listed rival, AML Foods, in its most recent financial period, Mr Roberts said that “without some quick action” the sector’s challenges would only become deeper.

“I notice it’s getting worse, and more and more of the public are shifting to price control items, which are high volume and low gross,” he added.

“Our inner-city stores, the smaller stores, are losing $20,000 a month. Quality Supermarkets is yet to turn a profit.”

Looking ahead, Mr Roberts said his businesses were “facing” the potential lay-off of 250 employees in Nassau, and another 150 in Abaco, in the worst-case scenario materialised.

Noting that such redundancies were already happening in many Bahamas-based businesses, he added: “That’s on the way. That’s what’s coming down the pipeline.

“We will have to decide what inner-city stores we will have to close; that will be faster. But we’re not going to dry up our assets that we’ve built up over the years. This is our decision.”

Mr Roberts’ disclosures further reveal the uncertainty continuing to grip many Bahamas-based businesses, due to the continuing ‘unknowns’ surrounding many aspects of the Government’s VAT and fiscal reform plans.

There are now less than four months to go before the Government’s July 1 VAT implementation target date, and the legislation and regulations have yet to be finalised and approved by Cabinet, let alone passed by Parliament.

A draft Tariff Schedule also has yet to be released for public consumption, and businesses have yet to be able to get their IT systems and software VAT ready, plus test it and integrate it with the Ministry of Finance.

Asked whether he personally believed the Government could implement VAT on July 1, Mr Roberts replied: “In a word: Impossible.

“We will be the largest tax collector I know, and I think we are the largest - or one of the largest - volume businesses in the country, and I don’t know diddly squat about VAT and how it can be implemented.

“I don’t know, my staff don’t know. In meetings with the Government, they say it’s a work in progress. They don’t know.”

Suggesting that there was too little time to train the private sector and its workforce in the nuances of VAT, despite the Ministry of Finance ramping up its educational plans, Mr Roberts said the recent revelations regarding the Government’s tax reform co-ordinator had further undermined business confidence in the process.

“I see a lot of shoals ahead, and I don’t care how good the captain is, he can’t negotiate those shoals. They are too many and too high,” the Super Value chief told Tribune Business.

“Government has to come to their senses, sit down with the business community and work out something.”

In a clear reference to Mr Lightbourne and his personal woes, Mr Roberts said the Government must “not put tax dodgers in charge of collecting revenues.

“Can you imagine? It’s just incomprehensible? Once they realised he’d done it, they have to take immediate action to restore some confidence.”

Mr Lightbourne had previously singled out Mr Roberts for special mention, accusing the Super Value president of trying to “derail VAT”.

Now, with the boot on the other foot, Mr Roberts told Tribune Business: “Ishmael Lightbourne has done more to derail VAT than Rupert Roberts.

“Thank you, Mr Lightbourne. He has thrown a monkey wrench into it. If the Government previously had 10 per cent goodwill, that killed it. If they try to hold on to him, that’s going to kill the Government.

“All of these things are accumulating, piling on each other, compounding it. This is what kills it.”

Comments

Kalikgold says...

Now we do not want to piss off the white man, now do we?

Posted 3 March 2014, 11:45 a.m. Suggest removal

carlh57 says...

what a dumb ass statement....business is business...and little minded thinking like that is why this nation is going down the toilet.....regardless of color....focus on change, growth, business, not color dumb ass...

Posted 3 March 2014, 11:59 a.m. Suggest removal

ohdrap4 says...

White or green, even with higher prices, I will buy from him.
He always gives chances to disabled employees, young people who through no fault of their own were born in this country but cannot get pass port till the age of 21, and he educates them in customer service.

I said before, white or black, I will not buy from any plp unless there is a published list of firms which are vat compliant.

If there is no such list, I will find out through the grapevine.

Posted 3 March 2014, 1:35 p.m. Suggest removal

B_I_D___ says...

Idiot

Posted 3 March 2014, 12:59 p.m. Suggest removal

Cobalt says...

You sound incredibly stupid.

Posted 3 March 2014, 1:03 p.m. Suggest removal

Islandgirl says...

Attitudes like yours are exactly why our country continues to sink. What an ingrate.

Posted 3 March 2014, 4:02 p.m. Suggest removal

killemwitdakno says...

The guy does have a point. I haven't seen the just starting out, lesser known, less spread black businesses getting a story to stick or a reaction from gov. See how gov sped down to the offended swiss banker, bet we'll hear something on this shortly. U know how it go. The party of blackness treats blacks the worse.

Posted 4 March 2014, 3:26 a.m. Suggest removal

jackbnimble says...

"The Super Value owner said the food retail/wholesale industry had received “nothing” from the Government in response to its concerns about recovering only a small portion of VAT ‘input’ tax payments, so the sector would “have to raise prices to compensate."

And so he has! Two weeks ago milk in Super Value was $6.39. It's now $6.89. Yogurt was $3.99. It's now $4.39... and the list goes on. Is anyone paying attention! The business owners are not waiting for VAT. They bringing VAT to the consumer!

Posted 3 March 2014, 11:59 a.m. Suggest removal

JohnDoes says...

just yesterday I checked, and milk was 8.49. VAT is doing nothing for us but contributing more to unemployment. Now the government is embarrassed that we have no other main source of income besides tourism yet they continue to dish out excuse after excuse while not solving the growing problem that they promised to fix. After VAT you will see a dire situation here in the Bahamas almost like a depression where it will take years for revenue to rise before more implementations can be made because of our high debts. They cant expect to employ everyone out of work in the tourism industry, thats why I have no faith in Bahamar because that will only secure a small portion of jobs, very small. We need agriculture and industrial businesses to aid in both income and jobs. They let the Morton Salt company come here and take all of our salt from our best salt flat that could have been in export to business and revenue for us. This government and the chaos now happening is a result of all the things the government did not do to promote a lazy, slack, irresponsible lifestyle for Bahamians. Now we are reaping what we sowed because Bahamians groomed into slackness do not know the proper way of doing business or conducting business, thats why we will forever be modern day slaves to the investor.

Posted 3 March 2014, 12:16 p.m. Suggest removal

HarryWyckoff says...

This isn't down to VAT. This is down to all the new customs/excise fees, and the new massively increased business license costs that finally came in to play this year.

These new costs, *before* VAT even arrives, have forced businesses to raise prices to avoid having to close their doors.

They will raise again when VAT is implemented for the same reason - they simply cannot stay in business if they don't.

Don't blame the businesses - they have no choice - blame the people who have massively increased business licenses, rolled out huge customs/excise increases, and are planning to force VAT upon you also - the Government.

Posted 3 March 2014, 1:05 p.m. Suggest removal

realfreethinker says...

Harry you are correct those fees have added additional cost to every imported including the "BREAD BASKET ITEMS ".because the fees go on the value of the entry it does not separate them

Posted 3 March 2014, 3:07 p.m. Suggest removal

ohdrap4 says...

Milk has fixed margin, go complain to the arawak port. We were had and no one talked about it.

Yogurt is not price controlled, but, after i complained here at the tribune, the price of greek yogurt came down from 6.99 to 4.89, 16 oz, fage. I bought several.

Cost-shifting occurs in eveyr business, that is why one aspirin pill will set you back several dollars if you are hospitalized.

Yep, I switched to price controlled items, and i carry a list around with me.

Posted 3 March 2014, 1:39 p.m. Suggest removal

TalRussell says...

These are shocking words but I am not ready to outright dismiss Comrade "Super Value" Rubert cause I know he's pretty darn smart businessman and one of the few business operators in we Nassau Town who not only actually pays their bills but they pay on-time. Nevertheless, why has Rupert not spoken out as forcefully against all them other business owners who be taki'in BEC electricity for granted, like it some kind free government education, acting like it supplied direct to their businesses, all for free? Maybe, if all the other businesses and politically connected were to pay their BEC bills like Comrade Rupert does, BEC could deliver cheaper rates of electricity to his food stores. Comrade Rupert are you also as willing to share your feelings over the selling/spinoff of BEC assets and how it will positively/negatively effect your bottom line?

Posted 3 March 2014, 12:35 p.m. Suggest removal

B_I_D___ says...

They need to ask the potcake chairman how much money he and his various 'enterprises' owe BEC...last I heard it was over 300,000. So to paraphrase the first poster on this comments section...go ahead and piss off the white man who pays his bills...but let's let the black brother slide and get some free power. One of these days, chances are you will be going to Mr. Roberts to beg for a packing boy position...*sigh*

Posted 3 March 2014, 2:50 p.m. Suggest removal

B_I_D___ says...

We are already trimming staff through normal attrition...not laying them off, but as they quit or get fired for whatever reason, we are not replacing them with another employee. Super Value's price increases have nothing to do with VAT...YET...so brace yourselves. Between the business license increases...which are extortionate, plus the new customs processing fee introduced last year, costs have gone up everywhere. Government says they were going to be trying to phase out business licenses in conjunction with VAT...as well as lower the duty rates...so what do they do, before VAT gets implemented, they jack the business license fees up sky high, and little by little they are increasing duty on items, so when the time comes for the VAT duty price drop, in actuality they are just going to drop to their previous levels of a few months ago...brace yourselves folks, VAT will cause the prices to soar...don't kid yourself into thinking otherwise.

Posted 3 March 2014, 12:57 p.m. Suggest removal

ohdrap4 says...

I was shocked when I learned that only a portion of their vat would be recoverable.

Govt shows no mercy. Through policy they have destroyed the egg industry and now slaps a 30% duty on eggs, which is one of the few healthy things on the price controls.

Beautiful, now that there is no local producer, increase the duty.

Posted 3 March 2014, 1:59 p.m. Suggest removal

proudloudandfnm says...

1% entry processing fee.

$50.00 to request an officer to examine cargo.

$50.00 per hour for the officer to examine cargo.

We have never had to pay an entry processing fee.

We have never had to pay to request an officer's presence.

We did pay for officer's time but at their pay scale, it maxed out at around $35.00 an hour.

This is why you see Super Value's prices going up, has nothing to do with VAT.

Now when VAT comes......

Don't care what anyone says. VAT will kill this country....

Posted 3 March 2014, 1:21 p.m. Suggest removal

GQ says...

I wish for just one month the idiots who have no idea what it costs to run a successful business would have to wear Mr. Roberts shoes.
He did not get where is financially today like so many politicians, he got his the old fashioned way by working for it.
And the idiot who wants to make it racial you are the kind who are ashamed of your colour and none us of had any control over that but you are responsible for for your attitude.

Posted 3 March 2014, 1:22 p.m. Suggest removal

carlh57 says...

amen!

Posted 3 March 2014, 3:20 p.m. Suggest removal

TheObjectiveVoice says...

...and overpricing stuff and selling expired goods. I don't know if things have changed now but back in the day when E.J. Bowe was at Price Control, he had them in check. Go and look up any old Guardian and Tribune. It's all right there....

Posted 3 March 2014, 8:40 p.m. Suggest removal

TalRussell says...

Comrade Ohdrap4 you means say they actually have Aspirins at PMH? Way back when maybe it was Simeon Bowe as the minister or whatever when the annual hospital budget showed that they had spent over $1 million on fish. Only problem was no former PMH patient or staff member at the time could actually recall ever seeing, smell'in any fish, much less being served even a lil tiny piece those million dollar fishes, live, fresh, frozen, baked, fried, boiled, steamed, or just plain morgue dead.

Posted 3 March 2014, 3:30 p.m. Suggest removal

B_I_D___ says...

Something smells awfully fishy there!!

Posted 3 March 2014, 3:36 p.m. Suggest removal

The_Oracle says...

On the Price controlled point, these goods are actually Margin controlled, or markup controlled.
You are allowed a % markup on the costs, including freight and duty.
if the costs go up, the price goes up period.
Cortesy of Government, the costs have increased significantly.
All costs of doing business, no matter what the business activity is goes into the price of the goods or service.
Same reason why Doctors and Surgeries, etc cost so much.
The doctor is, over time, recovering the very high debts of Med school.
The general population needs to wake up and realize it is these Politicians and Civil servants riding on them and taking 35%+ of their income, soon to be adding 15% more!
Duty rates should come down concurrently but the Government is trying to ride with both for awhile to boost revenue.
Even the IMF realizes there will be a hit to both Govt revenue and the economy.
Government is not being truthful or admitting this is all their doing.
Borrowing to the hilt with no conscience.
And each administration has been deferring hoping they weren't the one caught holding the bag.
Sorry PLP, your it!

Posted 3 March 2014, 3:56 p.m. Suggest removal

killemwitdakno says...

When they know that we know that they knew, what you think they gonna do. the hand coming down quick for the grab in my opinion.

Posted 4 March 2014, 3:46 a.m. Suggest removal

banker says...

That unfortunately is the situation now. How did Radio Shack clerk, beverage manager and union rep Shame Gibson get so rich after serving as Housing Minister?

Posted 3 March 2014, 4:18 p.m. Suggest removal

Honestman says...

Clearly because he has superb business acumen hidden during his previous ordinary lives.

Posted 3 March 2014, 8:20 p.m. Suggest removal

Bahamianpride says...

Banker, when u calculate the total compensation package for ministers including housing allowances & cars it would still not account for the amount of wealth many amass in there years in government.. Transparency will never happen to explain the constant need for more taxes and fees.. Size,cost, competency, efficiency of Government is never seriously put on the table in addressing uncollected taxes, mismanaged or stolen revenue before they borrow more money or implement new taxes... To institute a new tax system without addressing entire systemic problems gets us no where..

Posted 4 March 2014, 11:03 a.m. Suggest removal

B_I_D___ says...

We've done pretty darn well doing things totally above board and legal...AND paying all our bills...but I don't know...getting pretty darn rough out there...may need to look at 'cutting a few corners' or shutting it down altogether.

Posted 3 March 2014, 4:23 p.m. Suggest removal

Honestman says...

You are right, many Bahamians really don't know right from wrong. Morality lessons should be taught in schools from age five onwards.

Posted 3 March 2014, 8:24 p.m. Suggest removal

Honestman says...

There is not a "cat's chance in hell" of VAT being implemented from 1st July. I predict that government will defer VAT until 1st January 2015 whilst at the same time it will try to find the courage and a mechanism to legalise web-shops. This might allow VAT to be introduced at 10% instead of the punitive 15% Whatever happens, 2015 is going to be rough on the economic front for residents of The Bahamas. All responsible citizens should do their part for the country by bringing their taxes up to date or at least enter into a conversation about a repayment plan.

Posted 3 March 2014, 4:17 p.m. Suggest removal

TheMadHatter says...

VAT should be implemented at a tenth of 1% (0.1%) on Sept 1st - so that the PROCEDURES can be worked out and the FOCUS can be on the METHOD and not the money.

Once everyone figures out how to do it - THEN it can be raised to 10%.

Posted 4 March 2014, 9:54 a.m. Suggest removal

B_I_D___ says...

Total agreement there...maybe not the tenth part...but phase it in...start it say 1% and every couple months up it another percentage points...it will also help the businesses with high and pricey stock levels work through inventory and balance all the new tax on their merchandise, instead of one huge WHACK.

Posted 4 March 2014, 10:04 a.m. Suggest removal

TheMadHatter says...

Yes, you have a good view. ALSO Govt needs to completely forget about putting VAT on BEC. If they do that, we will all turn into Haitians and build our rafts to Miami.

Posted 4 March 2014, 10:08 a.m. Suggest removal

TalRussell says...

I ain't even gonna have liquor you up or nothing and still I ask you to decide with clear mind which man should be in room advising the PM. Would you want PM Christie to be in the room listening to Comrade Rupert or "Self-Confessed" Tax Dodger" Ishmael? Even if Rupert is only talk'in 5% of sense, at least the PM would have a man sitt'in in the room who does pay he taxes.

Hallelujah cause Comrade Rupert worked real hard and smart and even after he paid he taxes, he still made it real good in he own Bahamaland!

Posted 3 March 2014, 5:35 p.m. Suggest removal

Mannonn says...

This comment was removed by the site staff for violation of the usage agreement.

Posted 3 March 2014, 6:13 p.m.

Honestman says...

That is one libelous statement - hope you can back it up. Tribune, why is no-one moderating bloggers' comments? As a newspaper you are leaving yourself open to litigation.

Posted 3 March 2014, 8:28 p.m. Suggest removal

killemwitdakno says...

It's a comment, not their statement.

Posted 4 March 2014, 3:10 a.m. Suggest removal

B_I_D___ says...

This comment was removed by the site staff for violation of the usage agreement.

Posted 3 March 2014, 8:31 p.m.

ohdrap4 says...

LOL. that only happens in the bahamas

last years, for severalmonths, there was a biblical sign at solomon's:

EATING OF THE FRUIT IS PROHIBITED

Posted 3 March 2014, 9:32 p.m. Suggest removal

TalRussell says...

Vote in Comrade "Super Value" Rupert as our new substantive finance minister. What if the PLP boys were to buy-out Comrade Rupert making them the dominate players in the retail food store business? Oh yeah I almost totally forgets, didn't they done try their hands at operating a major food store chain, that Sir Staford had once owned and had been in business, long before they had become wealthy people. But unlike Rupert, there's collapsed financially with even some worry, if ex employees ever goings see their pension monies. Looks like the controversial top guns over at NIB say buying some old beat-up warehouse building could turn out be much too controversial, even for them who is no stranger to when it comes to having to explain things. All things considered, wouldn't you agree that Comrade Rupert is looking damn pretty being perched at very top of his food game. And you know what, Rupert deserves every bit of his hard-earned success.

Posted 3 March 2014, 8:37 p.m. Suggest removal

banker says...

And he could shut it all down tomorrow and live comfortably. He doesn't need the aggravation, and Bahamians would suffer. Agree with you.

Posted 4 March 2014, 11:51 a.m. Suggest removal

sheeprunner12 says...

All Bahamians should respect Mr. (Sir) Rupert Roberts.............. he should be knighted. As compared to some a dem PLP lackeys with Queen's honours behind their names

Posted 3 March 2014, 9:28 p.m. Suggest removal

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