Everyone is leaving . . . :(

http://www.thenassauguardian.com/bixex/304619667621544.php

Scotia Bank packs up local credit card center


By INDERIA SAUNDERS, Guardian Business Desk, Inderia@nasguard.com


Scotiabank can be added to the list of businesses now moving at least part of their operations in The Bahamas to somewhere else, given its move to create a Caribbean credit call center in Barbados and end its need for a similar operation here.

In a statement provided Guardian Business yesterday, the company billed the transfer as part of its strategy to create excellence in the Caribbean. It was also quick to point out that the near-dozen employees now employed at the local center will remain with the Bahamian operation.

"Employees affected by the change will be redeployed and engaged in new branch operations and other areas of the Scotia Bahamas network," said the company statement, the end result of a week-long Guardian Business query. "No Scotiabank employee in The Bahamas will lose their employment as a result of the creation of the Caribbean Credit Card Centre.

"The Caribbean Credit Card Centre will provide centralized processing services to meet the needs of Scotiabank's Caribbean credit card customers."

The consolidation move is likely a cost-cutting effort, although Scotiabank declined to offer an explanation for shifting the center in arguably its most profitable market in favor of Barbados.

The Canadian bank also failed to provide dates for the relocation. Still, Guardian Business understands the company is effecting that transfer of operations and ahead of an expected boon in that segment of the local banking business.

The end result of the move, said one financial services player Monday, will be to further shrink the country's second largest sector, eroding another area of banking expertise.

Guardian Business understands that RBC remains the primary local commercial bank operating a call center here, even despite its own move to relocate head office authority for the region from Nassau to Port of Spain, Trinidad, as part of its acquisition of rival RBTT.

Outside, financial services, rum distiller Bacardi has also been lured away by the Caribbean, set to move its New Providence factory operation to Puerto Rico.

Although Scotia's decision may ultimately reduce this country's banking expertise, it will likely be followed by the relocation of other niche functions at it's and other banks, say local analysts, pointing to the competitive forces facing this jurisdiction.

Bahamian credit cardholders also lament customer service representatives with an in-depth working knowledge of the local retail market. It's a complaint now springing up among Americans concerned about the outsourcing of customer service work by U.S. firms to India. While that is driven by relatively low wages, it is unclear if Barbados offers Scotia that kind of particular advantage.

Still, the bank asserts that it remains committed to its operations in The Bahamas and its workers.

"Being a global employer of choice means being [in] a place where talented people want to work and where all employees have the opportunity to thrive in their careers," said the company statement.

FirstCaribbean did this years ago! Our "don't caredfied" attitude/lack of work ethic towards work will be our down fall! And the cost of doing business here!

Actually, the real reason is a tax treaty that Barbados has with Canada. It is similar to the one that Canada has with the US.

If a Canadian company pays taxes in whatever jurisdiction that they operate in, they are not required to pay further tax upon repatriation of the profits back into Canada.

Barbados instituted a 4% corporate tax, and signed a reciprocal tax treaty with Canada. It is a huge windfall for Barbados and equally beneficial for Canadian companies (such as the banks). Barbados gets 4% of the profits, and the banks avoid paying 22% tax when they repatriate the profits back to Canada. In effect, the companies save 18% on their tax bill by doing business in Barbados.

This was a special sweetheart deal done by the Rt. Honourable Paul Martin, the ex-Prime Minister of Canada. Before he was prime minister, he was finance minister. He was also the owner of Canada Steamship Lines, and after the deal with Barbados was done, Canada Steamship Lines conveniently got a head office in Barbados. But nobody gives a damn, because Martin is also the architect of the Canadian economy and tax system that brings in over $9 billion in budgetary surpluses each year over the last decade.

Actually, the real reason is a tax treaty that Barbados has with Canada. It is similar to the one that Canada has with the US.
If a Canadian company pays taxes in whatever jurisdiction that they operate in, they are not required to pay further tax upon repatriation of the profits back into Canada.
Barbados instituted a 4% corporate tax, and signed a reciprocal tax treaty with Canada. It is a huge windfall for Barbados and equally beneficial for Canadian companies (such as the banks). Barbados gets 4% of the profits, and the banks avoid paying 22% tax when they repatriate the profits back to Canada. In effect, the companies save 18% on their tax bill by doing business in Barbados.
This was a special sweetheart deal done by the Rt. Honourable Paul Martin, the ex-Prime Minister of Canada. Before he was prime minister, he was finance minister. He was also the owner of Canada Steamship Lines, and after the deal with Barbados was done, Canada Steamship Lines conveniently got a head office in Barbados. But nobody gives a damn, because Martin is also the architect of the Canadian economy and tax system that brings in over $9 billion in budgetary surpluses each year over the last decade.

How can we get the Bahamas one of these deals?

How can we get the Bahamas one of these deals?

We first need people in the cabinet that actually uses email......

We first need people in the cabinet that actually uses email......

Not to mention that they would actually have to care about providing benefits to the country,
instead of just lining their pockets.

Also, although Martin is a lawyer, he too was/is a business owner and having been finance minister, he is 'in the know' in terms of what Canada needs to survive globally in the future. I wonder sometimes where HI is steering this country.

Not to mention that they would actually have to care about providing benefits to the country,
instead of just lining their pockets.
Also, although Martin is a lawyer, he too was/is a business owner and having been finance minister, he is 'in the know' in terms of what Canada needs to survive globally in the future. I wonder sometimes where HI is steering this country.
As much as I poke fun at Z Laing, he has to relaize the importance of these type of issues at his post at MOF.

Doesn't PM HI have a cadre of financial advisors to give him this kind of advice and keep up with these type of developments?

I don't even expect them to come up with new ideas, JUST STEAL THE GOOD ONES FROM OTHER COUNTRIES.

We won't care, as long as it works.

Fa tru dred. Jamaica allows meetings and conferences held in the country by US companies to be tax deductible. Why doesn't the Bahamas do that? Does the Bahamas do that? We're closer than Jamaica and we have the business hotels. Why can't we attract more business groups?

Service will even get worse. I just tried to manage my accounts online. It is a nightmre. The so-called security questions have made it too complicated and tech support in not available after 4:30 p.m. They have taken us to the FOURTH WORLD!!!!!!!!!!!!!!!!!!