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The "Fantastic Four" Delivers "The Carnival Compromise"

The team returned over the weekend and they today held a press conference to disclose the promise terms of what we've dubbed the Carnival Compromise:…

Hon. Dean Barrow, Prime Minister
"What was agreed with Carnival is that there will be a transition period during which the status quo the current arrangements will be maintained and from that point of view I believe we can justifiably claim that the mission was successful. The problem is though that while a (stay of execution so to speak) was obtained the length of the stay have not yet been determine. Basically government or the team said to Carnival 'we want the transition period to be a long as possible' Carnival response was 'we want it to be as short as possible', we said we are thinking in terms of a year, Carnival said 'we are thinking in terms of weeks', in any event there is simply not enough of the large scale tenders in Belize country to service at that level all of the cruise lines. There really is no choice but to wait until the additional tenders can be procured. My notes reflect that this was accepted by Carnival except that they made the point that if it took too long to put the new arrangements in place they reserve the right to reduce the number of calls to Belize. What is very important in this mix is that Carnival agreed with us that 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 wish to participate. Bottom line suffice it to say that Carnival has agreed to it will treat with this new Belizean entity and that it will seek to enter into a contract with that new Belizean entity. All the tender owners/ operators who are here this morning, who are in that meeting have agreed that they will come together form this new Belizean entity that will contract with Carnival and the way we see it all of the cruise lines doing business in this country. It is Carnivals' position that it is happy to enter into the negotiations with the new Belizean company or the new soon to be form Belizean company and that it is happy to conclude an exclusive deal with that company. Carnival is so important because it is already the biggest player in the cruise sector in this country and it is talking about increasing the volume of business that it does in this country. So coming to this understanding with them agreeing on a way forward has been absolutely critical."

As the prime minister explained, the principal beneficiaries of the arrangement are those 11 small tender operators who - according to Carnival - should have been out of work from last week.

Now they are the cruise lines' point of contact, looking to make a collective investment - and no longer subject to the whims of a middleman. The new group - as we understand it - will be run by a board of directors and government has agreed to have the DFC assist them with financing, and assured them that they will be granted all concessions to get their enterprise going.

Stanley Longworth Sr. is the interim head and he discussed the practical dimensions of the new way forward:…

Stanley Longsworth Sr., Head of Tenderers' Group
"We feel that it is exactly what we have set out to achieve because basically our objective is that the tender business remain in the hands of Belizeans."

Jules Vasquez
"Now there are practical realities, a large amount of capital has to be accessed, I don't know if this size of vessel can be made locally. Have you all looked at those issues?"

Stanley Longsworth Sr., Head of Tenderers' Group
"Absolutely, even though this thing has burst out of nowhere, we are aware that boats can be built in Belize, in fact we do have one particular boat that was built in Belize, as far as the requirements for additional boats are concern, if it cannot produce locally in time then we look at the export market."

Jules Vasquez
"In terms of time do you all know how soon you all will be able to make or access these vessels on the international market?"

Stanley Longsworth Sr., Head of Tenderers' Group
"It is of the opinion that a local boat produce in Belize will take 3-4 months. The international market we have to search for the source because Carnival has requested that these boats be of a minimum of 150 passengers and currently the boats that are mass produce are about 120-140 passengers."

Jules Vasquez
"I know it's at the preliminary stage but initially do you know how much one vessel like this will cost and you have in mind how many you all will need to create?"

Stanley Longsworth Sr., Head of Tenderers' Group
"We are looking at about 1 million Belize per vessel and we will need a minimum of 5 additional vessels to get it going."

And while the way ahead has been mapped up with surprising speed and effectiveness, there's still a dispute about who knew what and when. Carnival claims it told the local shipping agent Eurocaribe about the change in August, which Eurocaribe says it was so told on January third.

But that's in the past now. Presently, representatives of the Florida Caribbean Cruise Association are in Belize. The Prime Minister was scheduled to meet with Norwegian cruise line today to ask them also to participate with the new tenders association.

According to tourism board statistics, cruise lines spend 155 million dollars on tendering services in Belize in 2010.

Channel 7

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.

PM DEAN BARROW RETURNS FROM MIAMI WITH UPBEAT NEWS FOR LOCAL TENDER OPERATORS

Prime Minister Dean Barrow this morning hosted a press conference at the House of Culture to update the media on the outcome of talks he held over the weekend with representatives of Royal Caribbean and Carnival Cruise Line in Miami, Florida. Following the announcement made by Carnival Cruise Line on January fourth of new requirements that would leave many Belizean tenders unemployed Prime Minister Dean Barrow along with a delegation made up of tourism industry officials took immediate action. As the main speaker at the press conference PM Barrow got in to the meat of the matter and wasted no time in announcing that they fulfilled their purpose.

Prime Minister Dean Barrow

"What was agreed with Carnival is that there will be a transition period during which the status quo, the current arrangements will be maintained. From that point of view I believe we can justifiable claim 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. I do want to say at this point that in fact that was the main focus of the mission. There was never any question of trying to persuade carnival to roll back their decision to proceed by way of the larger tenders. So, our objective was always to buy as much time as possible for this transition to take place."

The transition that the PM speaks of is as described by Carnival is an appropriate period of time to allow a scaling up of Belizean tenders. However, if the process takes too long Carnival reserves the right to reduce the number of calls to Belize.

Prime Minister Dean Barrow

"I understood that to be code for saying well while the reality is the reality and what it is is what it is don't use that as an excuse for dragging. What is very very important in this mix is that Carnival agreed with us that 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 of course because our concern has to be for the small tender owners who would be displaced completely by the new requirements. We said to Carnival, and while to some extent we were flying a little blind we did have some indication from the meeting that I was not present at but that the minister and Seleni and Lindsay had with the tender owners that we could get the tender owners to agree to come together and to form this new entity, this new company that would then provide the services in due course that Carnival requires. Bottom line, suffice it to say, Carnival has agreed that it will treat with this new Belizean entity and that it will seek to enter into a contract with that new Belizean entity."

To ensure that the tenders and the cruise lines are on the same page Stanley Longsworth Senior the representative chosen by the tender operators that will form this new entity to negotiate on their behalf met with Carnival Cruise Line and Royal Caribbean this evening. Love News caught up with Longsworth after the Press Conference.

Stanley Longsworth Senior; Representative, Tender Operators

"Well we will set the guidelines for future negotiations. We will also try to feel them out on exactly what needs to be achieved almost immediately so that there is no disruption of the tender service to the industry."

Melinna Martinez, Reporter

Speak on some of the investments that need to be made by the tender owners. What is the current situation and what exactly they need to do to meet these standards?

Stanley Longsworth Senior

"From what I have gathered the cruise lines are requesting that we increase the size of the tender boats to a minimum of a hundred a fifty passengers. We estimate that if this is to be done in as short a time as possible we would need probably between five to seven tenders. We further estimate that the cost of these tenders could estimate from $1 to $1.3 million per tender and therefore we would need to seek funds maybe internationally. The Prime Minister has indicated that he will try to help us with DFC funds which we certainly appreciate."

PM Barrow said he would meet with Carnival as well as Norwegian Cruise Line, who they did not meet with in Miami, to ensure that a contract is signed with them confirming that all the tendering will only be provided by this soon to be formed Belizean company. The delegation led by the Prime Minister included Minister of Tourism Manuel Heredia Junior, his Lindsay Garbutt, and Director of Tourism Seleni Matus.

The Carnival Compromise In Peril? Or Is Someone Playing Games?

That's a complete reversal of position - because it again puts the Belizean operators in a subordinate position. After the meeting Stanley Longsworth - the head of the Belizean Co-Op - downplayed the reversal - but made it clear that things had changed and not for the better.

Stanley Longsworth Sr., Head - Tender Operators Group
"The issues are very difficult and I think it will take some time to come to an agreement."

Jules Vasquez
"But the impression we got very distinctly from the PM yesterday is that the stage is set - you just have to go out there and perform. You are saying that the devil is in the details?"

Stanley Longsworth Sr., Head - Tender Operations Group
"Well I think what has happened is that the goalpost has been moved and so the game becomes longer."

Jules Vasquez
"You are saying the undertaking, the commitment they gave the Prime Minister has not been upheld in these meetings?"

Stanley Longsworth Sr., Head - Tender Operations Group
"As it is unfolding we are finding out that like I said people positions have moved and so it becomes more complex and certainly more difficult."

Isani cayetano, Reporter - Channel 5 News
"Mr. Longsworth, I was reliably informed earlier that Rick O'Shea's name was once again mentioned as the point man for this entire situation in terms of tendering. Can you speak to us in some detail on that?"

Stanley Longsworth Sr., Head - Tender Operations Group
"Since we are in negotiations I don't want to get into the specifics. So I would prefer not to respond to that question."

Jules Vasquez
"When you talk about goalposts moving, the principal issue is that Carnival will agree to do business with this newly formed company/group. Is that still achievable? Is that still on the table? Or is that what is moving?"

Stanley Longsworth Sr., Head - Tender Operations Group
"The goalpost has moved."

Jules Vasquez
"So but as far as you are concerned, right now the future of the boat tenders which we left there feeling yesterday has been somewhat secured at least in the immediate, to short term, you are saying that right now the conditions of those tender operators are still in peril?"

Stanley Longsworth Sr., Head - Tender Operations Group
"Jules I think that there is a lot on the table, there is a lot to be negotiated and the goalpost has moved so the immediate future is at this point in time uncertain."

After that meeting finished at 12:30, a furious flurry of calls was made to find out what had gone wrong and what would happen next. Those calls ended up at the Prime Minister's Office where he was still in Cabinet.

After that was finished at 2:30, he called the senior Vice President of Carnival, Ruben Rodriguez who he had met in Miami on Friday. After that the PM convened a late evening meeting with the tender operators to tell them what the deal was going forward.

We caught him 40 minutes ago, just before he went into that meeting at the BTB headquarters on Regent Street:

Jules Vasquez
"Mr. PM there was a meeting today and it seems that the skies opened up and serpents came writhing down in terms of everything have been reversed. What's the latest as you go into this meeting?"

PM Dean Barrow
"Well as I understand in the meeting this morning it appeared that Carnival was saying that the new company that it was agreed would be founded would have to have some participation from Rick O'Shea."

Jules Vasquez
"Which was not the deal in Miami."

PM Dean Barrow
"Not the deal in Miami. I called Mr. Ruben Rodriguez who was the team leader in Miami [Jules Vasquez - executive vice president] and he reaffirmed the position to me which is as I reported. Carnival will treat with the new cooperative entity we are putting together and there is no necessity for Mr. O'Shea to be a part of that entity."

Jules Vasquez
"And the same for Carnival, Norwegian, i know all of them have some kind of understanding with Mr. O'Shea."

PM Dean Barrow
"Well I didn't speak to Norwegian or to Royal, my understanding of what took place in the meeting this morning was that Royal's position has not changed which is that while Mr. O'Shea had made them a proposal, they did not have any signed agreement with Mr. O'Shea. The Carnival position in the meeting this morning was that they had in fact had a signed agreement with Mr. O'Shea and so they would not proceed except Mr. O'Shea would be involved with the Belizean entity. Mr. Rodriguez has reiterated to me, Carnival will proceed with the Belizean entity and there is no need for Mr. O'Shea to be a part of that entity. If the Belizean entity wants Mr. O'Shea to be a part, again, Mr. Rodriguez has no objection to that, he doesn't care one way or the other and he will proceed on the basis of the understanding that we reached in Miami."

Jules Vasquez
"I know you can't see into the hearts of men but if that is the case from the senior Vice President, why such duplicity at the meeting today?"

PM Dean Barrow
"I don't want to speculate but Mr. Rodriguez is a diplomat, he says perhaps there are nuances that might not have been accurately communicated or understood, he will sort it out with his man who is a Captain Tringali that was in the meeting this morning. When I spoke to him Tringali was in the air between Belize and Miami. He will call me back tomorrow to confirm that he has sorted it out with Captain Tringali, but he is the boss and he is telling me that it is his decision that stands."

So, bottom line? After all the back and forth, the position tonight - is the same as it was at this time last night: The Cruise Lines will deal with a new Belizean company that would be made up of all the current tender operators. We'll keep following it from there…

Channel 7

Fate of cruise ship tourism tenders still on negotiating table There's a major upset to an announcement made by the prime minister on Monday that Carnival Cruise Line had agreed to a stay of execution in the new tendering policies by the cruise lines. All day today, the newly formed association of tender operators has been meeting on what seems to be a reversal of that position by the cruise lines. One foreign operator, known as Rick O'Shea, whose name has repeatedly been called in the past two weeks, appears to be the point man for the tendering. Late this evening, Prime Minister Barrow headed to a meeting of the boat tenders convened at the Belize Tourism Board. Earlier today, interim chairman Stanley Longsworth hinted that there was trouble when he said that the rules of engagement have somewhat shifted since the group's initial meeting on Monday. The ongoing negotiations are complex because it has to include the interest of more than ten independent operators whose size of investment vary. And according to Longsworth, the proposal has to be acceptable to Carnival Cruise Line. Stanley Longsworth Sr., Pro Tem Chairman, Tender Association "I think what has happened is that the goal post has been moved and so the game becomes longer." Jules Vasquez, Channel 7 "You are saying that the undertaking, the commitment that they gave the Prime Minister have not been upheld in these meetings?" Stanley Longsworth Sr. "Not in all its, as it is unfolding we're finding out that, like I said, people's positions have moved and so it becomes more complex and certainly more difficult." Isani Cayetano "Mr. Longsworth I was reliably informed earlier that Rick O'Shea's name was once again mentioned as the point man for this entire situation in terms of tendering. Can you speak to us in some detail on that?" Stanley Longsworth Sr. Stanley Longsworth Sr. "Since we're in negotiations I don't want to get into the specifics so I would prefer not to respond to that question." Jules Vasquez, Channel 7 "When you talk about goal post moving, the principal issue is that Carnival will agree to do business with this newly formed company slash group. Is that still achievable? Is that still on the table or is that what's moving?" Stanley Longsworth Sr. "The goal post has moved and it's difficult. In order to be able to continue our negotiations I would prefer not to comment in any further detail." Jules Vasquez, Channel 7 "Where do y'all go from here? Do y'all go back to the prime minister [and] ask for his intercession again? How do we proceed?" Stanley Longsworth Sr. "Well at the moment the negotiations continue. We are going to make a proposal to the cruise lines which will be in the best interest of ourselves of course but one that we think could be accepted and if, it depends on how they respond." Isani Cayetano "Mr. Longsworth it has been said that it is sort of a conflict of interest for you to be named the pro tem chairman seeing as though you have an interest in Caribbean Shipping and some of the other tender owners were saying that you will give your fleet of boats first preference regardless." Stanley Longsworth Sr. "Well first time I am hearing that one, but I would say in response that being a shipping agent places me in the right position to deal with the issues because it's something that we have dealt with for years. Secondly I was selected by the tender owners with a unanimous note. So I don't need to respond to that." Jules Vasquez, Channel 7 "But as far as you're concerned, right now the future of the boat tenders which we left here feeling yesterday had been somewhat secured-at least in the immediate to short term-you are saying right now that the condition of those tender operators are still imperiled?" Stanley Longsworth Sr. "[Umm] Jules I think that there is a lot on the table, there is a lot to be negotiated and the goal posts have moved so the future, the immediate future at this point in time is uncertain." According to one tender operator at the meeting, the prime minister is maintaining that in telephone calls this afternoon to Ruben Rodriguez of Carnival, he was assured that the cruise line will keep its commitment to operate through the local boat tender association. What happens next is anyone's guess, but clearly the situation is beginning to look even more complex. Still on the issue, BTALCO this afternoon issued a release saying that it was appointed as the port and receiving agent for two catamarans consigned to Norwegian Cruise Line's Pride of America. Those catamarans arrived in Belize at the Big Creek Port on December twenty-seventh. According to BTALCO, Mike Singh, whose name has been called in the tendering controversy, is the founder of the company but has not been engaged in the operation of the company since 2004.

Channel 5

Tenders: The Final Deal

Channel 7