Dear Sirs / Madams,
The Clement Payne Movement sent out a Press Release yesterday pertaining to the Fair Trading Commission’s decision on the proposed sale of the BNTCL to the SOL group of companies and other related matters. Unfortunately we were operating on the basis of erroneous information published in the Nation Newspaper about the said FTC decision. Now that the content of the FTC decision has been made clear, we have amended and revised our Press Release as follows :-
The Clement Payne Movement denounces the decision of the current Democratic Labour Party (DLP) administration to privatize our state-owned Barbados National Terminal Co. Ltd. (BNTCL) by selling it to Mr Kyffin Simpson’s SOL group of companies, and we applaud the recent decision of the Fair Trading Commission NOT to approve the said sale.
Indeed, we consider the actions of the Freundel Stuart administration to be particularly disgraceful, in light of the fact that they contested (and won) the 2013 General Elections on an anti-privatization platform .
Not only did they solemnly promise the Barbadian people that a re-elected DLP Government would preserve our state-owned enterprises, but they also assured us that they were saving us from dastardly BLP privatization intentions!
Needless-to-say, they shamefully betrayed this solemn undertaking by entering into a contract with Mr Simpson’s conglomerate to sell it not just “a” state-owned enterprise, but to sell it the single most valuable and profitable enterprise owned by us, the people of Barbados .
But, not only is the Stuart administration guilty of deceit and treachery, it is also guilty of being captive to a very backward and reactionary right-wing concept of governance.
You see, Mr Stuart’s administration– like virtually all other elements of the current Barbadian political class — seems to believe that a government must be run solely and totally on the basis of taxation. In other words, that the revenue the administration needs to provide government services must come solely from taxing the people and firms of the country.
Indeed, they are so captive to this backward idea that they are seemingly incapable of understanding the necessity of a Government possessing profitable state enterprises that can earn revenue for the Government — revenue that can be applied towards providing the services that the people need.
Clearly, Mr Kyffin Simpson’s company wishes to acquire the BNTCL because it is a profitable enterprise that will earn valuable revenue for the SOL group of companies for many many years into the future.
Well, why can’t Mr Stuart and Mr Sinckler appreciate that we — the citizens of Barbados — wish to continue to own our BNTCL for precisely the same reason ? We are not merely interested in receiving a one-off payment of sixty or eighty Million dollars for our BNTCL ! Rather, we wish to continue to have ownership of this valuable company and have it deliver annual profits for us for many decades to come.
Over the past twenty-five years Barbados has been plagued by silly and treacherous governments that have privatized and divested such valuable and profitable state enterprises as the Insurance Corporation of Barbados, the Barbados National Bank, Barbados External Telecommunications, and the Pine Hill Dairy. And now they propose to sell off the “jewel in the Crown” — the BNTCL.
The message that the successive pro-privatization Administrations have been sending us is that they are of the view that all profitable enterprises that are capable of earning revenue for their owners must be in the hands of the Private Sector, and that Government is to only own unprofitable, loss-making enterprises !
How stupid and backward this thinking is !
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NOT A DAM THING YOU AND YOUR DISGRUNTLED HATE FILLED FOLLOWERS CAN DO ABOUT IT,,,,
WHEN WAS THE LAST TIME YOU OFFERED ANY SOLUTIONS TO BARBADOS ECONOMIC PROBLEMS
IF MEMORY SERVES YOU HAVE BEEN A PAIN IN THE ASS TIME AFTER TIME USING THE COURT AS A GUILLOTINE TO CUT BARBADOS ECONOMIC PROGRESS AT THE KNEES
NEGRO WHEN YOU HAVE A SOLUTION YOU WOULD BE INVITED AT THE TABLE.
UNTIL THEN SPEAK ONLY TO THE FEW MINIONS WHO WOULD ENGAGE YOUR SELFSERVING NONSENSE
Dont mind ac Yardfowl…the ministers can’t sneak and give Simpson the monopoly on oil on the island…..like the sell out negros they are…
PLUS..
they will be kicked out of parliament in mere months, all of them…the wheeling, dealing and selling out the people is coming to a swift end.
JAC A..SS YOU WAIT AND SEE COME 2018…YOU AND YOUR PAIN IN THE A.SSS SALIVATES AT THE THOUGHT OF RENDERING BARBADOS ECONOMY HELPLESS
NEXT THE HYATT YOU CAN PUT THEM IN THE PIPE AND SMOKE THEM
The Clement Payne Movement denounces BOTH the initial decision of the current Democratic Labour Party (DLP) administration to privatize our state-owned Barbados National Terminal Co. Ltd. (BNTCL) by selling it to Mr Kyffin Simpson’s SOL group of companies and the recent decision of the Fair Trading Commission to approve the said sale.
Whence the notion that the FTC has “approved” the merger/sale?
@Jeff
BU warned about the misinterpretation of the decision based on media reports and not the official decision. It is a position you should look at for future announcements.
Yall know ac Yardfowl knows nothing about interpreting information.
Yardfowls will be desperate up until June 2018, but everything is closing in on them right now and they can feel it….so they will lash out.
The message that the successive pro-privatization Administrations have been sending us is that they are of the view that all profitable enterprises that are capable of earning revenue for their owners must be in the hands of the Private Sector, and that Government is to only own unprofitable, loss-making enterprises !
How stupid and backward this thinking is !
+++++++++++++++++++++++++++++++++++
Is this not what the RH Bushie has been preaching, cussing about, whacking at …now for YEARS??? (…the Right Honourable Bushie… 🙂 )
Mean you only now get it? … AFTER the last pieces of family heirlooms are being handed back to the old plantation masters?
Don’t you see all the young men walking around with their asses EXPOSED – something that the old plantation masters used to FORCE us to do – VI ET ARMIS, back in the old days, in order to emasculate any REAL men among the brass bowl slaves…. NOW WE DO IT VOLUNTARILY.
What did you expect Jeff to do…. Really???!!
ALL Bajans are RH brass bowls who have VOLUNTARILY enslaved themselves mentally to the people of John and Vincent’s ilk…. and are COMMITTED to taking us all back to the ‘good old’ plantation days.
If a people ALWAYS get exactly what they deserve…
What do you expect brass bowls to deserve…?
It’s funny how communists, despite the overwhelming failure of every communist country in the world, continue to campaign for their state-provided comfort by way in inefficient and ineffective national sustenance.
All the evidence of the failures of state-run companies, projects, ventures etc. are staring all of us in the face in the form of national bankruptcy and a level of inefficiency and frustration never before experienced.
The only reason BNTCL is profitable is because IT IS A FUCKING MONOPOLY!!!!!!!!!!!!!!!!
If the FTC had any sense they would approve the sale and then bring down the monopoly that makes it such a good deal. Then Rubis could compete fairly and we could all benefit as citizens.
But then Rubis would have to deal with TCP, permits, approvals, letters, bribes, snivel servants, port authority, boards, lackies and everything else in Bim that has stagnated progress.
The only good outcome for all of us is a dissolution of the company and leasing provision for the assets on 10-year terms to the highest bidder. Then we would see what it is worth.
dont sell the cow…. sell the milk
@Jeff
BU warned about the misinterpretation of the decision based on media reports and not the official decision. It is a position you should look at for future announcements.
But what gets me, David, is that this is not even a misinterpretation but rather a total fabrication of the decision…
Jeff, the Nation Newspaper report said the FTC has given the green light to the sale subject to some conditions. If this is not correct why didn’t the FTC publicly correct the Nation story? Am I to understand that the FTC has not approved the merger? If that is so, that is good news for me. Could the FTC please clarify the position?
DAVID COMISSIONG
The is obviously a timing issue that Jeff should move to remediate asap and for future ensure the comunications person at the FTC is synced with the ‘requirements of the transaction’.
Sounds like “double speak” coming from certain quarters . Some where in this speak the word integrity and accountability should be taken into consideration
The public right to know the truth if a falsehood is issued should be corrected immediately by those given the authority to do so.
The Westminster model is that the people cast their votes and the rich and famous pay off (bribe)the governments to do their bidding.It can be seen all over the world where it exists.This model has to go and be replaced by one that will serve the interests of the people not the cows,jerkers,baloneys,temples or cuffings.The first order of business is to get rid of the Dems,next legislate to ensure accountability and place performance reviews by public hearings on the annual calendar of events,third penalize the crooks and the crooked enablers by taking away their assets and placing the sale proceeds in the consolidated fund to house every last bajan in a decent home with modern amenities.Nuff more things to follow.
It is unfortunate that Jeff takes to social media forum as an avenue to some what”remedy”a story now consider a fabrication
One would have believed that given authority Jeff would in good conscience for the protection and dignity of parties involved in the decision making and on behalf of the citizens of this country right to know the truth hastily condemn such actions in writing to the newspaper in question and ask for a retraction
FTC set to okay BNTCL sale??????
The public right to know The truth should be given preference. This is a story that have far reaching consequences to all parties involved as well as country and if a fabrication should have never been given the traction and legs to reach this level of discussion.
The FTC has a commitment with dutiful responsibity to country interest when the rubber hits to road with an effort to remove doubt and suspicion immediately
Timing is the issue, election coming soon. Have to get cow SOLD NOW, so tomorrow New Government may have to BUY OLD SOLD COW back, meanwhile politicians walk with pockets full mickey mouse cash.
Good work, Commissiong, . Mission accomplished.
“The former Prime Minister made it clear he did not believe in privatization of the Margaret Thatcher variety “which sets out just to destroy workers”, even while warning Government that there could be no running away from the issue, which goes against all that they had said during the last elections.
“The Government is committed to doing it, but the only reason they are not doing it is because they embarrassed themselves in the election campaign, having themselves said they are not going to privatize, sent an old lady called Ms Mapp, who is my friend, to curse me and say, ‘Owen Arthur is trying to take money out of my pocket,’” Arthur told Barbados TODAY.
However, he said based on his experience, privatization has worked in this country’s favour.
He pointed out that “the Democratic Labour Party privatized Heywoods before, the [Barbados] Labour Party privatized the two banks [Barbados National Bank and the Insurance Corporation of Barbados], the Democratic Labour Party is now privatizing the [Barbados National Terminal Company Limited], it has privatized part of the Gems of Barbados, so it can’t be if we are opposed to it; it is how best we can do it and that should be the discussion in Barbados”.
In the case of BNB, the former Minister of Finance repeated his oft stated position that it went from a loss-making bank to a profitable entity in which Government’s 20 per cent stake was worth more than its 100 per cent stake before its sale, “and rather than lose jobs, it now” employs twice as much people”.
BLPDLP:Six of one half dozen of the other.
Dump them !!!!
@AC, l ‘highliked’ your 10:02 post because it speaks generally in reasonable terms: “The FTC has a commitment with dutiful responsibity to country interest when the rubber hits to road with an effort to remove doubt and suspicion immediately”
GENERALLY SO, not completely. The FTC has NO obligation to refute any fabrication whether immediately or otherwise unless said fabrication emanated as a result of THEIR error.
Further, at 9:27 your broadside at the chair is nonsensical. The FTC has not besmirched the parties involved so they have no need to rush out to refute erroneous reporting or erroneous interpretations in that regard.
Seems to me the chairman is quite savvy enough to appreciate the game and that the FTC team will release their report when all parties who need to be appraised are so advised.
David, kudos to the Nation for getting a scoop … if they are so completely wrong in their reporting as suggested then that is just terribly poor journalism…and the scoop is meaningless.
@Dee Word
We may never know but you will recall the last time confidential communication between the FTC and BNTCL was ‘leaked’. Perhaps this has served to muddy the issue.
William Skinner November 28, 2017 at 11:18 AM #
I have asked before: why is there an assumed correlation between good management and the private sector, and bad management and the public sector?
@ dee word
I dare disagree with your conclusion
To whom much is given much is expected
The FTC is part officialdom and answerable to the people of this country
When incidents of this nature occur it is the responsibility of the FTC to weigh in to correct especially when their is a possibilty of dire consequences which can effect the decision making as well damage to the govering body of the FTC as well as country image .
Integrity and accountability should be sufficient reason for the FTC to hasten and to correct as quickly as possible in attempt to contain or prevent any damage to the integrity of the process
I am not going to place total blame on the media especially after the cat is out the bag and FTC representative takes to social media as a tool for remedy a problem of this sensitive nature rather than channelling efforts to confront and correct via main stream media and the source of the fabricated information in question
@ Frustrated Businessman
Who said that there has been “the overwhelming failure of every communist country in the world”?
This is based on whose definition of ‘failure’ and ‘success’? There are community-centric projects in communists countries that bring GREATER development in overall HUMAN VALUE than the best GDP rated countries anywhere.
GDP is a shiite index that CAN easily reflect a situation where a few multi- multi-billionaires like baloney CAN, along with the other 250,000 broke brass bowls, produce a GDP index of world class level….
There is NO correlation between bad management and the Public Sector. …and there CERTAINLY is none between Good management and the PRIVATE sector.
Indeed, in the OVERALL scheme of things, Bushie will choose the Public sector EVERY TIME – where at the very least, we get to cuss the damn brass bowl crooks.
The stealing and injustice in the PRIVATE sector is institutionalised and accepted as normal. Shiite FB, who it it that brought us slavery, apartheid, Enron and CLICO?
The sale of BNOCL is not about ‘privatisation’, it is about the DISPOSAL of Bajan assets by a bunch of brass bowl PARROs in our parliament who don’t have the pride – or indeed basic DECENCY, to even see what they are doing to the damn country…
Owen could REALLY shut his stupid trap when it come to this topic and to CSME…. HE has singlehandedly done more to REVERSE independence than all the other JA politicians combined… But then again, he is an economist – whatever the Hell THAT is…
JA….
Hal Austin November 28, 2017 at 1:16 PM #
William Skinner November 28, 2017 at 11:18 AM #
I have asked before: why is there an assumed correlation between good management and the private sector, and bad management and the public sector?
The answer is very simple : We have chosen to drink the public sector Kool Aid. Don’t forget we grew up hearing “only white people can run businesses and those type of myths. Although they were multiple examples of black business persons who were very successful. Well when the whites (plantocracy) gave way to the black political managerial class, the negative view of “black people can’t mange nutting’ returned.
This view is now used by people such as Donville Innis, who almost daily blames all his government’s failures on the black public servants and of late trade unions. So it is now a stupid widespread belief that the private sector should lead and everybody else should follow. Its a colonialistic conditioning , that some of us find very hard to shake off.
Shameful but true !!!
@William Skinner
The idea that the public sector is much less efficient than the private sector is a widely held view, just examine the metropolitan countries e.g. USA; Britain; Canada; France etc. In Barbados it takes on racial implications because the mercantile sector was mainly run by whites while the public service is predominately black.
It becomes rote for everyone (politicians included) to blame the public service for inefficiencies as they make easy targets because everyone “knows” the proverbial civil servant who takes 2 hour lunches or is lackadaisical and provides inefficient service.
In light of the text of the FTC decision it appears that Jeff is vindicated.
The Nation publishes a correction
http://www.nationnews.com/nationnews/news/105389/bntcl-acquisition-ftc
The Fair Trading Commission, pursuant to Section 20(5) of the Fair Competition Act CAP.326C (FCA), has completed its analysis of the merger application submitted by BNTCL Holdings Limited (SOL) and the Barbados National Oil Company Limited (BNOCL), referred to hereinafter as the Applicants.
The Commission has considered all of the information submitted to it in order to determine the likely impact of the transaction on competition in the relevant markets, namely the markets for the storage and distribution of auto fuels, JetA1 fuel and HFO.
In so doing, and in accordance with Section 20 (7) (a) to (e) of the FCA, the Commission considered the structure of the markets likely to be affected by the proposed transaction, the degree of control exercised by the enterprises, the likely effect of the proposed merger on consumers and the economy, the actual and potential competition from other enterprises and the likelihood of detriment to competition.
In assessing the likely impact of the proposed merger on consumers and the economy in accordance with Section 20 (7) (d) of the FCA, the Commission also considered the compelling arguments advanced by SOL regarding the suggested financial benefits which they posited would be occasioned to the Barbados economy on realisation of the proceeds of sale.
Subsequently, the Commission made the following determinations on four (4) major issues identified with the proposed transaction:
Issue 1: The Vertical Alignment of the Upstream and Downstream Markets — The Commission is of the view that this transaction in the upstream market for the storage and distribution of auto fuels, JetA1 fuel and HFO would significantly lessen competition in the relevant downstream markets of the retail of auto fuels and distribution of JetA1 fuel. The Commission believes that there could be foreclosure post-merger which would allow the Applicants to increase the cost to rivals, thereby leading to upward pressure on their sales prices. SOL could restrict or refuse access to current and potential Marketers at the Terminal, or offer access only on discriminatory terms. In addition, the possibility of SOL having access to sensitive information related to its competitors would be increased.
Issue 2: Increase in Throughput Fees [Clause 11(xv)] — The Commission is of the view that the ownership of the bottleneck facility, along with the proposed higher throughput fees charged post-merger, may provide a sufficient cushion for SOL to engage in anticompetitive tactics in any of its downstream operations, which could potentially have a negative impact on consumers.
Issue 3: The Fifteen Year Moratorium [Clause 11 (xvi)] — The Commission is of the view that the inclusion of Clause 11 (xvi) on the moratorium is inherently anti-competitive, restricts competition or potential competition, and is therefore contrary to the Fair Trading Commission Act CAP. 326B (FTCA) and FCA.
Issue 4: Absence of Real Efficiencies — The Commission, having determined that the transaction is likely to substantially lessen competition, also considered whether they were real efficiencies which would be great enough to offset the potential anticompetitive effects. In the Commission’s view, the efficiencies put forward by the Applicants were not real but pecuniary and are neither greater nor more than what is required to offset the effects of any limitation on competition that is likely to result from the proposed transaction.
Further, the Commission was of the view that the arguments advanced by SOL regarding the suggested positive impact of the proposed merger on the financial position of the Barbados economy, though compelling, did not sufficiently outweigh the competitive concerns raised.
In light of the foregoing, the Commission has determined that the merger as currently structured and presented to it, does not qualify to be permitted under Section 20 of the FCA. The Commission is of the view that there are no available behavioural remedies which would adequately address the anticompetitive concerns in the transaction as currently structured.
As such, the Commission cannot but decide against this proposed merger transaction. The Commission will assess any substantially altered transaction which may be placed before it.
THE DECISION
The policy pursued by the Government of Barbados to have the BNOCL divest its interest in the BNTCL is not being challenged by the Commission. However, the Commission is of the view that the proposed transaction, if it were to be consummated, is likely to cause anticompetitive effects because it is probable that the Purchaser could utilise its vertical alignment in the upstream and downstream segments of the market to the detriment of competition in the relevant product markets.
The Commission is also of the view that the granting of exclusive importation rights to the Purchaser, which has been proposed, is likely to bolster their position in the market. Additionally, the Commission in its determinations, finds that the substance of the sale as it stands cannot be completed because the moratorium clause and the increase in throughput fees, which are conditions precedent in the Sale and Purchase Agreement (SPA), are inherently anticompetitive.
The Commission notes that despite the submissions that additional anticompetitive effects are likely to result from the proposed transaction, the Applicants have not made a showing of evidence that rebuts the presumption of anticompetitive effects.
Neither have the Applicants demonstrated a willingness to address the offending clauses in the SPA.
The Board of the Commission, on November 23, 2017, determined that it would be prepared to approve the completion of the merger ONLY IF:
So David Commissiong jumped the gun and argued against something that never was? I suppose it was important to get his views across even if it was under false pretense.
First lesson: verify details before cutting and pasting. Because it is in the press does not mean it is accurate. Newspapers get lots wrong.
I thought it was clear to everyone that there were issues to address before any approval was given…..read between the lines next time….newspapers are there to sensationalize……not to analyze.
When I saw “Clement Payne” I incorrectly assumed the article would be DC exploring why Bim was still not yet a Republic and which Windsor relative was making the trip for Independence celebrations. Unusual for him not to read content.
No, David Comissiong did not jump the gun. The Nation Newspaper carried a news report which stated that the FTC was approving the sale and merger, and no correction was made by the FTC.
Anyhow, I welcome the FTC ruling, which is in keeping with the contents of the letter of objection that we sent to the FTC in January of this year, and I say–“well done” to the FTC ! I heartily applaud your decision.
You should also note that our Press Release was really focused on the issue of privatization in Barbados; on the political treachery of the current DLP administration in seeking to privatize the BNTCL after being elected to power on an anti-privatization campaign; and on the backwardness of successive Barbados governments in hiving off all the valuable and profitable state enterprises to the Private Sector. The FTC ruling was not the fundamental content of the Press Release.
DAVID COMISSIONG
David Commissiong stated the Nation reported approval of the sale subject to certain conditions.That is as stated in the FTC press release.How is Commissiong wrong pray tell?’
The “value” in the SPA was all that which is to be altered/deleted. Maybe the offer will now be $50 million? Or we can re-tender, that will provide more sweet fees for somebody.
On the eve of the general election in 2013 here is what David Estwick had to say. The relevant part is 4.40 to minute 8. This is the same DLP we have now?
If you listen to David Estwick he says only a HALD A MADMAN of a Prime Minister would sell off/privatise BNTCL and BNOC.
Gabriel, the FTC can’t make the “political” decision whether to privatize or not. The FTC can only concern itself with whether the proposed sale and merger will result in a situation of private sector monopoly and lack of competition that would be detrimental to the people of Barbados. So it would appear that the FTC went as far as it could in deciding that they consider the proposed sale to have monopolistic and anti-competitive consequences, and that they are not approving it as currently structured.
DAVID COMISSIONG
SOL could invest that $60 million in Guyana.
The content of the press release was amended by David Commissiong- and updated to BU- in light of the erroneous report by the traditional media.
Wait..”big guts” PM & dem are role models?
Paragons of gluttony or wuh ?
Thanks, David C. Very useful interventions. It is never an easy task to do the right things and to do them right.
I thought you all want government in general, B or D, to go the route of privatisation.
@David
I commented on what was written in the original “news release”, why is Commissiong allowed to edit a communication that has already been published and commented on? If Commissiong now wants to submit a retraction surely it should be published separately and not amended as it leads to confusion among others who may not have seen the original.
You do the FTC and the bloggers a great disservice.
It was a BU decision Sargeant, your objection is noted.
Sargeant November 29, 2017 at 1:10 AM #
@Sargeant,
This is the problem with Googling, you jut do not know what has been edited. It happens all the. time.
8
David, Mr Blogmaster of course its your prerogative to update all things on your site but surely even for a comparatively mildly intrusive issue as this one is you do want to maintain your own high standards!
Your site is not the Bajans repository of media record a la the Advocate or a NYT but based on its excellent chronicle of data, caliber of contributors and editorial team I am sure you seek that type of gravitas.
So that said why simply not insert the new release herein and leave the original on top or at minimum link to the original also.
Otherwise, as @Sargeant alludes to several posts that made perfect sense now appear incomprehensibly obtuse…for example:
<<Jeff Cumberbatch November 28, 2017 at 12:25 AM #
The Clement Payne Movement denounces BOTH the initial decision of the current Democratic Labour Party (DLP) administration to privatize our state-owned Barbados National Terminal Co. Ltd. (BNTCL) by selling it to Mr Kyffin Simpson’s SOL group of companies and the recent decision of the Fair Trading Commission to approve the said sale.
“Whence the notion that the FTC has “approved” the merger/sale?”>>
@Dee Word and Sargeant
Your objections were noted, the original press release was inserted this morning in blue.
This is what Worrell said and just as I thought…it is a waste of time selling SOL or anyone else the oil terminal, just to end up at the same DEFAULT place in 3 months…..a failed government. ..with LEC on the brain.
“However, even if Government is able to get the US$100 million it is asking for, Worrell does not believe it will make a big difference to the country’s bottom line at this stage, given a high fiscal deficit in excess of five per cent of gross domestic product, a national debt of over 100 per cent of GDP and less than $600 million international reserves….”
barbadostoday is saying that Worrell is saying:
“The former Central Bank Governor warns that Barbados’ dollar faces devaluation.”
A failed government.
” Commission is of the view that there are no available behavioral remedies which would adequately address the anti-competitive concerns in the transaction as currently structured.”
Remedies to correct dominant and potentially abusive behavior can be either behavioral or structural. Behavioral remedies obligate SOL to do something or stop doing something in order to alleviate anti-competitive concerns. it requires ongoing administrative oversight by the FTC.
Structural remedies need less FTC oversight but would require SOL to sever or divest part of the combined entity in order to eliminate some of their market power and control.
The Commission has commented on the former but not the latter. Why?
Structural remedies need less FTC oversight but would require SOL to sever or divest part of the combined entity in order to eliminate some of their market power and control.
The Commission has commented on the former but not the latter. Why?
@ Tony Gibbs, Perhaps none was proposed…
Which Minister(s) managed to get a whole gas station in 6ROADS as part of the BNTCL deal?
The fact of the matter remains:
BNTCL is a monopoly.
It is only profitable because it enjoys a monopoly.
The ‘income’ it earns is simply another tax on fuel collected in a different way and without the benefit to the consumer of competition.
SOL and RUBIS should make application to open competing terminals and take any gov’t resistance to the FTC.
This entire affair has been handled ass-backwards.
Gov’t’s job is to LEGISLATE, REGULATE AND FACILITATE, NOT OPERATE.
No gov’t enterprise should be competing against tax-paying companies or individuals.
@ Frustrated B
Agree with you EXCEPT for the following:
“It is only profitable because it enjoys a monopoly.”
Properly managed, with competent and visionary leadership, it could be even MORE profitable EVEN if not enjoying monopoly status.
Is there a reason that you always seem to exclude the potential impact of WISDOM?
Bushy, we cannot defeat the Laws of Natural Selection.
All the inbreeding does is postpone the inevitable extinction.
Monopolies are, by description, incestuous.
Without competition among and between species, all the unsurvivable traits will flourish and the necessary survival attributes will diminish.
No-one who understands simple nature could ever support a monopoly.
Statue of Lord Nelson in Bridgetown, Barbados defaced – Nation News.
Private Sector monopolies are to be avoided, but there is nothing intrinsically wrong with a publicly owned (state) monopoly. Such a monopoly is owned by all of us– the citizens of the nation– and whatever profits it makes because of its advantages as a monopoly become the property of all of US– the citizens and taxpayers of the country– income / revenue that can then be used to provide the services that we Citizens need.
DAVID COMISSIONG
The following is an extract from the letter that the CLEMENT PAYNE MOVEMENT sent to the FTC in January 2017 objecting to the privatization of the BNTCL by way of sale to the SOL group of companies. The extract constitutes a defense of the BNTCL as a public sector monopoly :_
“It is difficult – if not impossible – to conceive of a more efficient arrangement than the one that exists now, with the state-owned entity fairly and even – handedly servicing all of the private sector retail companies, and at the same time looking out for the consumer by settling for a rate of return that is extremely modest and yet still sizeable enough to enable the enterprise to make a more than reasonable profit for the Government and people of Barbados. Thus, one CANNOT argue that the proposed merger will bring any gains in efficiencies, much less any gains that would be capable of off-setting the obvious ill effects of the limitation on competition that the merger would cause.”
@Frustrated,your argument falls rather flat when one considers that SOL applied to effect the same monopoly — for at least the next 15 years.
Are you suggesting that RUBIS would have had all grounds to petition to operate a competing facility were that application approved??
And what benefice in a small market as ours for three minimal refineries when the job can be done effectively and rationally by one.
The problem in not the monopoly itself as Commissiong states above…rather it is who gains the profits.
I suspect the business community drools at milking that cash cow. Just as the greedy pols seek to feather their retirements and give SOL the vast millions in future profits.
@ Jeff Cumberbatch November 29, 2017 at 8:14 AM
On the face of it one can conclude that the FTC’s decision is one of forcing those two secret lovers to privately kiss and makeup by way of a proper commercial marriage.
We are willing to place ‘all-in’ to bet that the FTC (under your astute guidance) would have been most favourably inclined to bring this economic SOS divestment to a more timely clear-cut conclusion if both ‘competing’ parties had entered into a joint-venture ownership and operating arrangement. The finished petroleum market in Barbados is far too small for a duplication of storage and distribution facilities.
The absence of economies of scale in a sunset industry would preclude Rubis from investing in its own facility to ‘rival’ the SOL aka BNTCL existing storage facility.
The BNTCL is a supplier of an undifferentiated product whose only value added downstream is the location and appearance of the retail outlets of the so-called marketing companies.
They are forced by a price control environment to charge the same price to the ignorant customers who think they are buying an imaginary ‘different and better’ product from either Rubis or SOL or even Texaco, Esso or Shell.