Moontown

MEMBER OF PARLIAMENT FOR ST. LUCY, AMBASSADOR DENIS KELLMAN WILL PRESENT HIS CONSTITUENCY REPORT BEFORE HUNDREDS OF CONSTITUENTS ON SUNDAY, MAY 2, 2010 AT THE NORTH STARS CRICKET GROUND, ST. LUCY, FROM 4 P.M. SHARP…

YOU DON’T WANT TO MISS THE EXCITING PLANS THAT AMBASSADOR KELLMAN HAS FOR ST. LUCY AND BARBADOS AS A WHOLE.

THIS IS ONE CONSTITUENCY’S CONFERENCE YOU DO NOT WANT TO MISS… BRING THE ENTIRE HOME CIRCLE, FRIENDS AND NEIGHBOURS TO THIS AUSPICIOUS OCCASION.

PEACE AND LOVE.

CHICKEN PELAU; RICE AND PEAS

MACARONI PIE; CREAMED YAM

BAKED CHICKEN; BAKED PORK CHOPS

FRIED PORK CHOPS; BBQ SPARERIBS

BBQ PIG TAIL; FRIED SNAPPER

FRIED STEAK FISH; GRILLED STEAK FISH

LAMB STEW; FISH GRAVY

STEAMED VEGETABLES; TOSSED SALAD; COLE SLAW

Joseph Matalon, president of the Private Sector Organisation of Jamaica (PSOJ), is intensifying his organisation’s call for deep tax cuts by Government.

Matalon was addressing members of the business community at a forum put on by cable provider Flow, the Manchester Chamber of Commerce and the PSOJ, at the Golf View Hotel.

According to Matalon, the current tax reform regime was being implemented on a “piece-meal basis”. Contending that this did not encourage investment, he said that in most cases, the present tax measures lacked “consistency, cohesion and balance”.

The PSOJ president, whose organisation’s membership comprises some of the country’s leading business entities, said he would like to see the government implement a tax system “with a wide base with as low as possible rate”, while it phases out “tax preferences, concessions and waivers”.

He said tax waivers have become a characteristic of the current tax regime, which he termed “unfair and inefficient”.

Matalon cited World Bank figures saying it costs twice as much to do business in Jamaica when compared with what obtains glo-bally. This, he said, coupled with a web of cumbersome, antiquated regulatory and bureaucratic systems as well as complex laws, are deterrents to investments.(Jamaica Gleaner)

- Angelo Laurence

Minister of Finance and the Public Service, Audley Shaw (right) and his former junior minister of state now group chief operating officer at GraceKennedy Limited, Don Wehby share a joke at the official opening of the GraceKennedy Financial Building at the Fairview Shopping Centre, Montego Bay on Thursday. - JIS PHOTO

The finance minister, Audley Shaw, has again called for the lowering of interest rates to single digits, to boost production within the Jamaican economy.

“We have to have a consensus around bringing interest rates down in the economy. Irretrievably down to single digit interest rates, that is where we are going”, he stated.

He made these comments while giving the main address at the official opening of the Grace Kennedy Financial Building in the Fairview Shopping Centre, Montego Bay on Thursday.

While pointing out that the Bank of Jamaica rate on 30-day instruments is now down to 10 per cent, the lowest rate in over 20 years, the finance minister appealed to the banking sector to assist the government in leading the way to more aggressively reduce interest rates on commercial bank loans.

“When you do that, you are going to stimulate the market for more loans, for more private investments, for more businesses, for more start-ups, for more small businesses to get going, for more attractions to be created in the tourism sector”, he said.

Competitive framework

Shaw also said the competitive framework and environment within the economy can only be enhanced when low interest rates are offered to entrepreneurs.

He described the Jamaica Debt Exchange (JDX) programme as a step along the way and thanked the financial sector for participating in the programme.

The JDX involves the exchange of high-interest government bonds held by investors for low-interest ones with longer repayment periods. (Jamaica Gleaner)

Four-year-old Azhara Chin of Sts Peter and Paul Preparatory is the centre of attraction with her ‘waterfall hat’ at the school’s Earth Day expo on Saturday. - Colin Hamilton/Freelance Photographer

Jason McNorris’s hat focuses on the environmental issue, space junk. - Photo by Colin Hamilton

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 Ten-year-old Jason McNorris brought attention to an environmental issue that is picking up speed in mainstream media across the world. Space debris, also commonly referred to as space waste, orbital debris or space junk, is waste matter that can be found in outer space.

Space debris, is found in different forms, including but not limited to, satellites that are out of commission, fragments from collisions occurring between man-made objects and spent rocket stages.

“You shouldn’t make a space junkyard,” McNorris said, wearing a specially crafted hat that advocated against rubbish in space.

“We’re not just polluting Earth, but space also,” he continued. “Say ‘no’ to space junk.”

McNorris and other students took part in a hat parade at the school’s expo on Saturday, using creativity as a method of making each other more aware of the environmental issues of the day.

Other hats included a plastic skeleton and another showingunderwater biodiversity.

“There is a jelly fish, an octopus, a puffer fish, coral and a clown fish,” five-year-old Kahlil Smythe said, describing his work of art.

Earth Day expo

Sts Peter and Paul hosted its Earth Day expo in collaboration with the Home School Association (HSA).

“Earth is everybody’s business,” said Heston Hutton, president of the HSA. “This is a fun way of incorporating the environment.”

Educational resources were also available such as the British Broadcasting Corporation’s documentary Planet Earth being shown in a mobile theatre; and information on backyard gardening, recycling and water conservation.

“We said let’s look at Earth Day and use that so the children can learn about the environment in a physical way,” said Karen Siyanbola, principal of Sts Peter and Paul Preparatory.

“The hat parade will help to give the children a concrete understanding of conservation,” she said.(Jamaica Gleaner)

- laura.redpath@gleanerjm.com

Lucius Thomas, former police commissioner, raises his arms after being acknowledged by People’s National Party President Portia Simpson Miller during a meeting held at Manchester High School in Mandeville yesterday

The People’s National Party (PNP) has announced the establishment of its integrity commission which is to be chaired by Bishop W. A. Blair.  PNP President Portia Simpson Miller told the party’s National Executive Council yesterday that the party was determined to fight corruption of all forms.

“I take the integrity of the party very seriously,” Simpson Miller said as she announced the composition of the commission.

Former public servants Daisy Coke and Cedric McCalla will be the other two non-PNP members on the five-member commission.

Fred Hamaty, who served the PNP as senator, and Burchell Whiteman, a former party general secretary and minister of government, are the other members of the commission.

Framework builders

PNP members K.D. Knight, Trevor Munroe and Dr Omar Davies were responsible for the establishment of the framework for its integrity commission.

Yesterday, Simpson Miller said the commission was very important to the party.

“I want to ensure we take pride in what is being achieved by this noble movement and that all our candidates, all our officials can stand the scrutiny of time,” she said.

When the PNP was voted out of office after 18 years in 2007, many Jamaicans had said they believed members of the party to be corrupt.

A subsequent internal appraisal of the party’s performance in those elections found that the perception of corruption contributed to the party’s defeat at the polls. (Jamaica Gleaner)

People’s National Party President Portia Simpson Miller addresses the party’s National Executive Council. - Norman Grindley/Chief Photographer

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People’s National Party (PNP) President Portia Simpson Miller has read the riot act to party spokespersons.

Speaking during a National Executive Council meeting of the PNP at Manchester High School in the parish yesterday, Simpson Miller warned that those who are not pulling their weight in contributing to the ‘progressive agenda’ may not be made ministers when the party retakes power.

“I would want to remind all spokespersons, we are not asking or begging, it is a serious requirement,” the party president declared as she chided some unnamed members of her team.

“A prime minister appoints people as ministers based on their preparation and their performance while in opposition,” she added.

The progressive agenda of the PNP reflects an attempt to review and renew policies and programmes of the party.

Phase one complete

Simpson Miller said phase one of the progressive agenda has been completed and that the party will soon embark on another phase of consultation.

“I want to ask all the spokespersons who are not yet there in terms of their submissions to endure because, if it does not happen, I am going to get the progressive agenda team and my task force and pull professionals from other areas and do the work,” she warned.

“If I do that, then you are going to be in trouble.”

Meanwhile, the PNP president has signalled her party’s readiness for local government elections due by June or a general election if one is called.

“We are oiling the lamps, we are getting ready. Since we cannot predict, we are preparing,” she said.

In her hour-long presentation, Simpson Miller blasted the Bruce Golding government for being disrespectful in its approach to dealing with salary issues for public-sector workers. She said the Government’s policies are flawed and lead to a worsening of the standard of living for Jamaicans. (Jamaica Gleaner)

Sagicor Financial Corporation

Sagicor Financial Corporation (SFC) was not spared the effects of the global economic recession and weakened financial environment in 2009. For the year ended December 31, 2009, SFC reported diluted earnings per share (EPS) of US$0.181. This represents a decline of 48.7 per cent from the EPS of US$0.346 recorded in the previous year. Excluding one-off acquisition gains of US$18.8M and foreign exchange gains of US$10.9M in 2008, as well as a foreign exchange unwinding loss of US$9.3M in 2009, Core EPS would have declined 10.0 per cent from US$0.239 in 2008 to US$0.215 in 2009. The board of directors has recommended a final dividend of US$0.02 to be paid on May 21 to shareholders on record as at April 21, 2010. This will bring the total dividend for the year to US$0.04, as compared to US$0.05 in 2008.

Excluding the one-time acquisition gain, Total revenue grew 14.9 per cent over the year from US$1.05B to $1.21B. Contributing to this growth was an 18.4 per cent expansion in Net premium revenue to US$842.9M, with growth coming from the US and UK operations and a decline in the Caribbean. Net investment income increased 21.6 per cent to US$294.2M. Fees and other revenue, which included foreign exchange gains and losses, fell 28.0 per cent to US$68.2M.

On the expenditure side, Total Benefits rose 27.8 per cent from US$573.4M to US$732.5M in 2009. As a percentage of Revenue, Benefits accounted for 60 per cent in 2009, up from 54 per cent in the previous year. For the same period, Expenses increased 13.7 per cent to US$390.2M.

The combined increase in Benefits and Expenses was significantly higher than the growth in Revenue, and as a result Income before taxes fell 45.2 per cent over the year from US$150.9M to $82.6M.

A higher effective tax rate of 17.0 per cent in 2009, as compared to 14.7 per cent in 2008, further reduced the bottom-line profitability. Net Income for the year was US$70.5M, a 43.8 per cent decline from US$125.2M in the prior year. As a margin of the top-line, Net Income accounted for 5.8 per cent of Total revenue, versus a stronger 11.7 per cent in 2008.

Looking at the Group’s investment portfolio, marked-to-market losses on Available for sale financial assets of US$96.5M in 2008 were reversed, and a gain of US$44.1M was recorded in 2009 as financial markets rebounded. Overall, Total Comprehensive Income was US$100.8M in 2009, as compared to a Loss of US$15.4M in the prior year.

Total assets expanded from US$3.98B to US$4.46B, growing the balance sheet by 12.1 per cent. The group’s capital adequacy improved over the year, with the Minimum Continuing Capital and Surplus Ratio (MCCSR) increasing from 244 per cent to 273 per cent. This is comfortably above the 150 per cent ratio recommended by the Canadian regulations that SFC has adopted.

Going forward, growth in Net premium income will be challenged as the economic and financial environment remains weak, although stabilising. While new business growth in the US and UK has contributed substantially to the top-line, these operations have put increased pressure on the level of benefits paid out and expenses incurred. On a positive note, the Benefits ratio has been reduced over the last two quarters as shown in Exhibit 1, but the Group will need to manage costs to improve profitability.

The impact of the Jamaica Debt Exchange programme will be reflected in performance in the coming quarters. This impact is not expected to be significant as the face value of instruments exchanged for JM$ and US$-denominated instruments were US$372.5M and US$100.3M respectively. This accounts for approximately 21 per cent of debt securities or 14 per cent of total financial investments. The Group’s Standard & Poor’s credit rating of BBB (in line with the Barbados Sovereign rating) was unaffected by the Exchange.

At the current price of TT$10.15, SFC is trading at a trailing Price/Earnings multiple of 8.9 times, below the market multiple of around 13 times. One possible reason for SFC’s relatively lower multiples is the lower dividend payout. The payout ratio of 22 per cent compares unfavourably to the average 40 per cent payout policy of the banking sector.The market-to-book ratio of 0.87 is attractive as compared to the five year average of 1.3 times. On a technical note, the stock is trading around the lowest values since listing in 2004. Although the Group may be challenged to grow the bottom-line, its valuation parameters remain strong. BOURSE maintains a BUY recommendation.

Prestige Holdings Limited

Prestige Holdings Limited (PHL) reported a diluted EPS of $0.051 for the three months ended February 28, 2010 as compared with a diluted EPS of $0.108for the comparative period of 2009. Excluding one-off losses in 2009 from discontinued operations in Puerto Rico, earnings from continuing operations increased 17 per cent year-on-year from $0.115 to $0.134.

At the top line, Sales Revenue for the quarter declined 13.8 per cent from $185.7M to $160.1M.This decline was attributed to a change in accounting method for its Dominican Republic investment in Kentucky Foods Group Limited and a shorter Carnival season in T&T. The Group recorded a 15.1 per cent fall in Cost of Sales from $123.6M to $104.894M.

Gross Profit narrowed11.1 per cent from $62.1M in 2009 to $55.2M in 2010. Operating restaurants expense fell 13.7 per cent to $40.7M. Operating restaurants profit was fairly flat over the period at $14.5M. As a percentage of Sales, the Operating Profit margin improved from 8.0 per cent in 2009 to 9.1 per cent in 2010.

As a percentage of operating profits, Net Finance costs continued to fall, accounting for 21.8 per cent in the last quarter versus 33.2 per cent in the previous year. Profit before taxation increased from $10.4M to $10.8M. A lower effective taxation rate of 25.6 per cent, versus 32.7 per cent in 2009, boosted Profits from continuing operations by 15.3 per cent year-on-year to $8.0M as shown in Exhibit 2. This improvement came against the backdrop of an unprofitable fourth quarter in 2009. Including losses on discontinued operations, Profit for the period fell 54.7 per cent to $3.0M.

While liabilities continue to be reduced, the Group’s total assets fell 8.3 per cent to $338.7M in the quarter.

The Group has continued to shed its under performing operations throughout the Caribbean and this will hopefully strengthen its core performance in the coming years. In the quarter under review, the last of its Long John Silver’s restaurants was closed in Trinidad, as well as one more unprofitable TCBY store. In T&T, the Group has noted that its KFC, Pizza Hut and TGI FRIDAY’s businesses continue to post improved profitability, despite lower sales in the quarter. Another KFC has been opened in Maraval, and this should contribute to overall profitability in the coming quarters.

TGI FRIDAY’S in Jamaica recorded higher profits, despite the slower economic conditions. The Barbados operations continued to improve its loss position. In the remainder of 2010, these areas should be fairly stable.

Looking at the big picture, a more stable inflationary environment should help PHL to contain its Cost of Sales in 2010. However, given the stagnant economic conditions that exist in all of the markets in which the Group operates, revenue growth may prove a challenge going forward. Cost containment has been one of the key areas of improvement over the past few quarters and will continue to play an important role in the Group’s profitability.

At the current price of $3.50, the stock price has declined 8 per cent year-to-date. It is trading at a trailing P/E multiple of 16.5 times and forward P/E of 12.1 times, fairly in-line with the market multiple. BOURSE maintains a HOLD recommendation.(Trinidad Express)

Anna Ramdass anna.ramdass@trinidadexpress.com

American political strategist Bernie Campbell is refusing to set foot back in Trinidad and Tobago in the wake of his recent deportation. However, Campbell says he will be able to come back after May 25, when he believes Kamla-Persad-Bissessar will be the next Prime Minister of the country.

Last week, Campbell was refused entry to this country by immigration officials and sent back to the United States. The UNC had claimed this was done under orders from the National Security Minister Martin Joseph. However, Joseph has denied giving instructions for Campbell to be deported.

The UNC had hired Campbell’s firm to help strategise for the May 24 general election. However, since his deportation, his colleagues, who were also working closely with the party, have returned to the United States. They have pledged to continue working with the party, but from the US.

A source close to Campbell said yesterday that the strategist, who played a part in Barack Obama’s rise to the United States presidency, wants to put the entire incident behind him.

’Right now he feels the campaign needs to get back on track and not focus on him,’ the source said.

The incident, however, has sparked outrage in the party.

UNC Political Leader Kamla Persad-Bissessar on Friday described the deportation as a shame and an abuse of power.

Yesterday, COP leader Winston Dookeran also expressed his concern on the matter.

’We think it has been an affront on the international reputation of Trinidad and Tobago. We think it also reflects the abuse of power for private political purposes and we have condemned it and I continue to condemn it as an act of cowardice and an act that has brought this country into disrepute,’ he said.

And in a press release, the COP leader said the complaint lodged by the US Embassy at this act of discrimination threatens and erodes the progress in relations achieved by this country at the Fifth Summit of the Americas.

’That the Minister of National Security, Martin Joseph, denies giving the order, when according to the Immigration Act only the Minister can determine who is ’an undesirable visitor’, is a clear abuse of power for narrow political purposes,’ Dookeran said.(Trinidad Express)

Congress of the People (COP) Political Leader Winston Dookeran was yesterday confronted by police for failing to secure permission to hold a meeting at the Queen’s Park Savannah, Port of Spain.

Dookeran and several COP supporters, including prospective constituency candidate Anil Roberts and former national security minister Joseph Toney, had gathered directly opposite President’s House to speak out against crime. Party supporters erected 509 red cardboard images representing the persons who were murdered last year.

Soon after Dookeran pledged that the unity government will tackle crime as soon as it gets into office, the police arrived and an officer, whose name tag read ’Anthony Nesbitt’, identified himself as being from the Belmont Police Station and asked Dookeran what he was doing there and whether he had permission.

Nesbitt asked when the symbolic figures would be removed and Dookeran replied by 2 p.m. However, Nesbitt insisted that the figures be laid on the floor.

The Express asked if the party was breaking the law, to which Nesbitt replied, ’Have a nice day.’

The officer told Dookeran that a report was made to the police station that no permission was sought.

Eventually, Dookeran left and the supporters, who said they feared being arrested, took down the figures.

Earlier, before the police arrived, Dookeran said for the past eight years Government had been asking the people to have patience and faith as they would deal with crime.

’Today we can all agree that we can no longer have faith, we can no longer base our future on false promises,’ he said.

He said time has come for change and a unity government would deal with the issue and have a plan of three fundamental pillars.

Firstly, he said the unity Government would stop the growth of the criminal industry by introducing appropriate legislation to deal with criminal gangs. Secondly, he said education would be made a priority and the new government would work to improving social services and family life. He said studies have shown that there are 20 schools in this country where there is the prospect of young people entering the criminal industry and that will be prevented. Thirdly, he said the Police Service will be addressed and the unity government would ensure they are given the resources to work with and be held accountable to the Parliament.

In making his solemn declaration, Dookeran stressed that this cannot be achieved overnight. However, he said once there is a road ahead there would be a solution.

Roberts said the COP will no longer wear red as it represents the blood of the people. Instead, they will wear white to represent the party.

Toney said a systematic plan will be developed to tackle crime, including white-collar crime.

’So, Mr Calder Hart, watch out,’ he said. -AR (Trinidad Express)