The Trinidad alliance . . . another angle
Published on: 7/9/07.
by Hilford Murrell
AS SOON AS it became public knowledge that Neal & Massy Holdings Limited was seeking to merge with Barbados Shipping & Trading Co. Ltd (BS&T), there were numerous calls for Government to halt the transaction…
If the BNB/Republic Bank experience serves as any example of a Barbados/Trinidad relationship, then the shareholders in BS&T should be less concerned about their future in a similar union. The only caution lies in the choice of such a partner.
Nation Newspaper
The BS&T saga is sure to heat up again in the coming days and weeks and no doubt the sentiments raised by what is being described as an emotional and xenophobic Barbadian public will reach a crescendo. Many business analysts appear to be oozing out of the wood work with their narrow and greedy agendas. The latest such analyst is Hilford Murrell who is quoted in the Nation newspaper extract above. He is of the firm view that in the same way Republic Bank has turned around the fortunes of the Barbados National Bank, so too shareholders stand to gain from the sale of BS&T to Neal & Massy.
A quick question to Murrell, is the retention of the name Barbados National Bank by Republic Bank and the obvious goodwill which it has translated profit an ethical decision by them?
The point the analysts like Mr. Murrell continue to miss is to view the BS&T merger in isolation. Why is it that in the developed world certain companies which are viewed as national symbols are protected? Do you imagine that in the USA, Wal-mart and Citibank would shift to 100% foreign ownership and the average American say and do nothing? How are the North Americans able to manipulate the system to protect companies branded national treasures? We know that it is not the ideal comparison but the point we seek to make, the open door policy, similar to our policy on immigration cannot be left unregulated. Trinidadians have been investing in Barbados for years, we therefore do not buy this anti-Trinidadian crap. The other observation is the integration process under the umbrella of CARICOM is spluttering. The lack of support by regional governments to support regional air travel which is an obvious ingredient for regional integration is note worthy. Having said that, the cash rich companies of Trinidad are gobbling-up companies in Barbados under the guise of CSME when it is clear for all to see that CSME is still a work in progress. Why is it that Barbados must always be the guinea pig?
What ever became of the 100 million which Barbados is owed under the Caribbean Multinational Clearing Facility?
Analysts like Mr. Murrell sit and get fat and have said very little as of now on the need for Barbadian companies to change course. Why have they not put heat, over the years, on the directors of local companies to get up off their asses and represent the interest of the shareholders by maximizing the resources? Why have they not inundated the call-in programs, appear on the TV shows much in the same way Patrick Hoyos and Douglas Skeete are attempting to do? Instead, many of these so called analysts are happy to say the right things so that they are seen as being with the “in-crowd” and to get invited to the cocktail circuit. They write the occasional newspaper article or a book to boast that they are now “published”__ seems all very mundane doesn’t it?
Do you know why the house slave was not liked by the field slave?
BU want Mr. Murrell to respond to Prime Minister’s Arthur recent revelation that he is concerned with the type of investment coming out of Trinidad into Barbados. The investment has taken the easy form of Mergers & Acquisitions instead of new investment which would help to build capacity in the economy, create jobs etc. BU also want to hear Murrell’s view on the report published in the Trinidad Express which paints a picture of a Trinidadian economy which is energized by petro-dollars; however the inability of the T&T stock exchange to create equivalent investment opportunities has forced the cash rich T&T companies to set sights on the undervalued companies in the Eastern Caribbean. We ask Mr. Murrell and others to slither from under the comfort of their rocks and seize their civic duty by seeking to educate a Barbadian public which is illiterate in the ways of business. All of them owe it to Barbados which has invested millions of dollars over the years to educate them.
In the coming weeks as this issue intensifies BU will comment some more. Readers must discern by now that we are very intolerant of the “fat cats” in our society who have benefited from free education but are reluctant to give back in ways to protect the well being of our small society. For those who are comfortable now, we remind them that it is a state which can change over night. Let us all use the power which free education has given us to power Barbados into the new and competitive world which has emerged.
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