LAUGHING STOCK IN CARIBBEAN
Monday, March 29th, 2010
DENIS KELLMAN’S COLUMN’S- THE DEBATE
OCTOBER 18, 2007
The game continues. We are now the laughing stock of
the Caribbean. It worries me because when we were restructuring our economy in
the nineties these were the occurrences that we expected. We have now allowed
our leading company and its shareholders to be the laughing stock of the
Caribbean.
Previously, I forewarned readers that what we were
seeing was only the beginning of our demise. We are all over the world bragging
about our economic prosperity and demonstrating that since 1994 how these
companies were successful in increasing their profits.
We are now at a cross road. Is it a myth or is it
that other countries are doing better than us? The problem is that we have not
developed our investment market and we have continued to be a savings market.
We must ask ourselves the reason for major companies
not expanding their share capital. For too long, we have allowed these companies
to pose as public companies, while at the same time operating as if they are
private.
Can anyone tell me the company that has shared its
capital base lately? In the real world, most public companies would have used their
performances to offer shares to expand their companies.
BS&T as a company should have been buying
companies across the Caribbean instead of being the comic page. I advised the
directors to look at the bigger picture and to appreciate the message being
sent by allowing our competitors to take us over.
I am sorry that the authorities in Barbados have
allowed our shareholders to be treated like our fishermen. Now that the
shareholders have been treated in this manner, we can now appreciate the
treatment meted out to our fishermen.
When our fishermen were being imprisoned, everybody
ignored their plight. Now that the private sector and the Government have been
embarrassed on this matter, we will hear everybody using the fishermen to put
their case.
My position on this matter has not changed. I still
believe that selling BS&T is the most regressive occurrence. It being our
flagship must continue to be the leader. The sale of BS&T for capital gains
and foreign exchange is a short term gain with future losses that this country
cannot afford.
The game played by these companies is a slap in our
face and it will undermine the economic climate of our country. We have not
learned anything from our treatment in the nineties and the purchase of
Paradise by Sandals.
Our history is known, but it seems that we have
forgotten that we are leaders and not followers. Oil has done it for Trinidad and
tourism has done it for us. We have nothing to show from the billions in
capital gains from property sales. I have said before, that the same way that
our Sugar Industry has to account for all foreign exchange, the same principle
has to apply to the tourism sector. We cannot continue to allow a “too few” to
rape our country.
Our problem
is that we are too selfish. We have done everything possible to keep masses out
of the capital market. In most progressive countries, profitable companies
offer shares to increase their opportunity to expand their companies. In Barbados,
it appears that we can only appreciate the masses when we are in trouble.
With the introduction of VAT, BS&T as a leading
importer was able to capitalize on the shift in taxation, yet we have not seen
the expansion in the company that one would have expected. As politicians, we
must understand that we have to tailor policies to suit Barbados, which will be
beneficial to workers and the private sector.
I always thought that in law that an offer and
acceptance was important, until this BS&T fiasco. I was taught in law that
if someone offered to buy something from me and I accepted it within their
terms and conditions that it was legally binding on them. But it seems that the
pride and industry that we bragged about on becoming an Independent country has
been lost. May be this is the cost of Republican status.
If BS&T is important to others then it would
have to be more important to Barbadians. Barbados must continue to be developed
by Barbadians.
They laughed at us when we had no money, now they
are laughing harder now that we have a lot of money.
Peace, love, unity, humility, Kellmanomics, wisdom
and understanding.


