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Jan 10, 2011

Carnival & Royal Caribbean’s Temporary Tender Agreement

Both Carnival and Royal Caribbean cruise lines have agreed to, for now, to hold back on a new policy on tendering.  How long the delay will last is not known, what is, is that there is bound to be displacement after the new policy kicks in. That’s the message Prime Minister Dean Barrow brought back from Miami after meetings with the two cruise lines.  Here on the ground, the local boat tenders have also agreed to organize.  News Five’s Isani Cayetano reports on the Miami Mission.

Isani Cayetano, Reporting

Prime Minister Dean Barrow announced today that for now a new tendering policy is on hold and that tender owners have agreed to consolidate individual subcontracts to form a singular entity that will become the exclusive agency for tender operations in Belize.  That announcement succeeds a meeting held in Miami on Friday with executives from Carnival and Royal Caribbean, two major cruise lines that call on Belize throughout the year.

Dean Barrow

“The new mandate would be fulfilled by a new company, a new Belizean company that would be made up of all the current tender operators that wished to participate.  We made this proposal because, of course, our concern has to be for the small, the current small tender owners who would be displaced completely by the new requirements. What was agreed with Carnival is that there will be a transition period during which the status quo or current arrangements will be maintained and from that point of view I believe we can justifiably claim that the mission was successful.  Now the problem is though that while a stay of execution, so to speak, was obtained the length of the stay has not yet been determined.”

dean barrow

Prior to this morning’s press conference P.M. Barrow met with tender owners after which it was decided that they would choose from among themselves a pro tempore chairman.

Dean Barrow

“Mr. Stanley Longsworth Sr. who is one of those currently in the tender business has been elected or selected by the group to as it were pilot the project and to lead the negotiation certainly that are going to take place with Carnival now in terms of contractual numbers, in terms of rates, in terms of the length of period of the contract that the new entity is hoping to enter into with Carnival.”

Although a deadline is pending tender owners, under this newfound association, will have to seek venture capital from one of several lending institutions including the revitalized DFC.

Dean Barrow

“I will speak to the Development Finance Corporation to see or to ensure that the DFC can play a role in all this in terms of helping to provide financing for the new investment that this company and therefore especially the smaller tender owners will need to make.  And it goes without saying that the new company will be given every tax and duty concession that is legally available in this country.”

But what will become of the small tenders in which owners have invested heavily over the years?  According to Barrow displacement during this period of change is inevitable.

Dean Barrow

“The fact is that this whole thing goes very hard against them and in a sense the new investment they are going to have to make will have to provide its own returns but will also have to help them in terms of the obligations they already have for the tenders that they already own which are going to be displaced.  No matter how you look at it when the transition period is over there is going to be that displacement.  Again the BTB will be working with them to see how we can help with alternative activity for those smaller vessels.”

Amidst concerns raised by tender owners is that former C.E.O. in the Ministry of Tourism, Mike Singh knew of the change in tendering policies well before January 6th, the date the changes were to take effect.  This follows allegations made by EuroCaribe Shipping Services, the local agency for Carnival Cruise Line, that the government was informed of the changes.

Dean Barrow

“For you to tell me that there was an indication to you that at the meeting that is going to be held tomorrow a number, a range of issues would be discussed including safety, including head tax doesn’t tell me that Mike Singh knew.  Whether Mike Singh knew or not I can’t say, you’ll have to talk to Mike Singh.”

Reporting for News Five, I am Isani Cayetano.

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Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

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8 Responses for “Carnival & Royal Caribbean’s Temporary Tender Agreement”

  1. rootsman says:

    Interesting revelations, maybe Mike Sing should be charged for dereliction of duties if he knew and did not disclose so, can someone please present the letter which informed Mike Sing of these changes, I hardly believe that this was viva voce and if there is no proof let’s just shut the heck up on the accusations, as for the issue with the smaller tenders if these guys are going to join forces as a single entity to tender the cruise ships, why not think outside the box and just don’t label yourselves as a tender operation these smaller boats can be consolidated in the investment company as part of their holdings in exchange for a share of the equity and used for other tours suitable to their use in this bigger company, there are so many other functions these boats can serve if not tendering after all Belize has so many miles of beautiful waterways that would be quite suitable for the smaller boats and since the helpers on the larger tenders have direct contact with the tourist why not sell them packages for boat tours along these waterways now that would be some real experience for the tourists. It would be nice to see the PM play a more dominant role at a time when he can really be helpful like in making sure that no permits are issued for any outside company so that these guys can get themselves together with this new company actually I believe that bring in another company from outside to provide such services should not be allowed at all and he has the power to make sure that that does not happen that should not be Carnival’s call makes the PM looks like a pushover.

  2. REGGIE says:

    WHAT ELSE IS NEW BYING TIME DON’T HELP THE PEOPLE. NOTHING IN BLACK AND WHITE.THE CRUISE SHIP STILL HAVE THE POWER IN THEIR HANDS.WAST OF TRIP.THE THEY COULD HAVE MAKE THAT AGREEMENT OVER THE PHONE.THE PEOPLE MUST TAKE ACTION.NO MATTER WHAT THE OWNER DO THEY ARE A BIG TIME LOOSER. THEY CAN’T GO BACK TO THE BANK AND SAY BUSSINESS IS BAD.NOW I WONDER IF THIS IS A WAY THE G.O.B. IS GETTING BACK AT THE LORD ASHCRAFT .ONCE HE HURT THE OWNER THE BANK WILL BE THE ONE THAT LOST A FEW $ AND MAYBE THE OWNER SHOULD GO BACK TO THE BANK AND TRY AND WORK OUT SOMETHING TO GET A BIGGER BOAT.AND AGAIN HOW MANY OF THE BIG BOAT WILL THE COMPANY NEED?NOT EVEN THAT INFORMATION THE P.M.BRING BACK.GUY IT IS ALL OVER FOR YOU.THE GLORY TRAIN STOP IN 2011.STAND UP AND FIGHT FOR YOUR RIGHT.YOU CAN’T TRUST THE G.O.B. THEY ARE ALL ABOUT MONEY.DID ANY OF THE OWNER OF THE TRANSPORTATION COMPANY WENT ON THE TRIP?LET THE PM RELEASE THE MINUTES OF THE MEETING.

  3. EL CHE says:

    You dam right rootsman,but dean barrpw dont give a !@#$ about belizeans,he cares about ashcraft,his lawfirm,his brothers lawfirm,and family members,thats the cold reality in belize.sing is getting att the benefit of the turism,this ministers talk about all this mastermind moves.all this dont happen during the night,it was planed.you know,the plan was,we say they need bigger boats,small tenders get kick out of the buisness,then we(mike singh)stay with it.

  4. carlos says:

    This whole thing was planned. Why mike singh got prepared ahead of time. Of course he and the government knew. I think that the policy of this government is to kill small businesses and give the close friends the monopoly. This is bad for our country. Government should have policies where the benefits are spread out to as many people as possible. This make the rich get richer and the poor get poorer.

  5. Belizeanfirst says:

    We are becomming one more underdeveloped, “third world” country being raped for its natural resources and government not any smarter to realize this. This will go through for sure! We also heading to same way Guatemala is, where only few families own most of the natural resources and control the country. ROYAL FAMILY striving to ensure they own more than past PM family and cronies. RICH GET RICHER, POOR GET POORER. PAY attention to when they all talk, they SAY “the POOR PEOPLE.” They know they are not in that group of people. Now even the middle class is being squeezed into this category of poor people too.

  6. Rizzo says:

    Okay, so borrow went to Miami to do what again? Sounds like he went to Miami to have fun and take care of himself. Again, why is the PM going to Carnival and not them coming to us. He is the PM for Belize and should have them coming to us. He just belittled himself and bowed to carnival. Pretty much carnival is laughing at Belize. Belize is done! borrow have taken a cut/deal and we will never hear about it. The money is being placed in an account in Miami, hence the reason he went there. Thanks borrow for your support to your people that you represent!

  7. Earl Grey says:

    Looks like………. BUSINESS AS USUAL!!!!!!!!!!!!!

  8. The People Had Enough says:

    Now I know why a country go into a civil war, why people turn to guns; because When diplomacy fails there’s only one alternative. Force must be applied without apology.

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