By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

FORTY Bahamians are out of work in Grand Bahama after the closure of Butler’s Food World in the Circle Mall. Owner Jeff Butler closed the doors about two weeks ago and is uncertain about his next move for the business.

“I don’t know what I am doing till the middle of August,” he told The Tribune when contacted about the store’s closure.

Mr Butler opened Butler’s Food World in December 2010, operating a 20,000sqft supermarket featuring specialty foods from over 20 countries. It also consisted of a delicatessen, a café specialising in gourmet coffee drinks and pastries, a flower shop, liquor store and a cigar specialty counter.

He closed Butler’s Specialty Foods, the smaller food retail business on Yellow Pine Street two years ago, using it as a holding area and warehouse for the larger supermarket.

The new supermarket experienced serious financial challenges in 2012, falling into receivership, but Mr Butler was able to regain control of the business after five months on the grounds of a legal technicality.

There have been suggestions that the minimum wage increase to $210 from $150 by the government is the cause of the business closing.

Peter Turnquest, deputy leader of the Free National Movement, said that the situation is unfortunate, especially for those no longer employed.

“In the Grand Bahama economy it is hard to find a new one (job), and the fact that we are raising the tax burden on businesses as well as consumers is having a detrimental effect on businesses, and as a consequence on consumers,” he said.

Mr Turnquest said that by the government’s own estimate, the minimum wage rise could see as much as a 40 per cent increase in labour costs. “As a result of that one of two things will happen,” he said, “Either the prices will go up and consumers will be burdened further, or there will be job layoffs. Certainly, it does not encourage job growth.

“I think we all understand the need for a minimum wage, and I stated during my contribution in the House that I am fully on board and support the increase. But, my point was that we need to understand what the overall effect of these decisions are and ensure we put in as many protections and conditions that will soften that impact on the community,” said Mr Turnquest.

Business in downtown Freeport has significantly declined since the closure of the City Market Foodstore in 2011, and businesses there are struggling.

Mr Turnquest said that the downtown area is a very difficult market in which to operate. “As we lose more and more business in town, the more difficult it becomes for others to survive because we start losing critical population mass,” he explained.

“And so again, as we talk about the extension of Hawksbill Creek Agreement, it’s all become very relevant because a lot of these businesses have benefitted from the concessions of the HCA.”

The deputy leader of the FNM added: “I listen to people talk about getting rid of these tax exemptions and letting foreigners pay. But those foreigners also are affected and make decisions based on the tax burden, and if they decide to cut back on spending then there is going to be a detrimental affect on all of us. So my point is that we cannot be rash about these things; we need to think through it and understand it through a business point of view and an analytic point of view what is the cause effect.”