The Commonwealth of The Bahamas 2022/2023 Budget Debate Contribution By The Honourable Iram D. Lewis, MP & Shadow Minister of Youth, Sports & ...
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The Commonwealth of The Bahamas 2022/2023 Budget Debate Contribution By The Honourable Iram D. Lewis, MP & Shadow Minister of Youth, Sports & Culture Presented to the House of Assembly On Tuesday June 7, 2022
INTRODUCTION MADAM SPEAKER, PARLIAMENTARY COLLEAGUES, THOSE WATCHING FROM ACROSS THE BAHAMAS, GOOD DAY. AS I RISE TO MAKE MY CONTRIBUTION TO THIS 2022-2023 BUDGET, I WANT TO START OUT BY THANKING THE GREAT RESIDENTS OF CENTRAL GRAND BAHAMA, WHO’S VOICES I SO PROUDLY REPRESENT. IT REMAINS AN HONOR TO CONTINUALLY SERVE YOU AS YOUR MEMBER OF PARLIAMENT. MADAM SPEAKER: CENTRAL GRAND BAHAMA HIGHLIGHTS AND SHOUTOUTS. LEARN FROM SOUTHERN SHORES…WIFE AND DAUGHTER… CONDOLENCES 1). STEPHANIE ELLIS...PASSING OF CHRISTOPHER 2
2). FAMILY OF BEVERLY SHERMAN ONE OF MY MOTHERS DAY HONOREES 3). EARL GODET AND FAMILY… SISTER VIVIAN 4). FAMILY OF STEPPIE LEWIS I ALSO WANT TO SEND A SPECIAL GET WELL TO BRAD MCPHEE AND THE SURVIVORS OF THE PLANE CRASH IN LONG ISLAND. WE ARE CONTINUING TO PRAY FOR THOSE VICTIMS AND THEIR FAMILIES, INCLUDING THE MEMBER OF FORT CHARLOTTE AND HIS WIFE. WE HOPE FOR SPEEDY RECOVERY AND ANSWERS ON HOW OR WHY THIS INCIDENT HAPPENED. THIS HOLIDAY WEEKEND WAS A VERY EVENTFUL ONE AS WE GOT A TASTE OF THE REAL START OF THIS HURRICANE SEASON. GRAND BAHAMA WAS ONE OF THOSE ISLANDS TO EXPERIENCE ADVERSE WEATHER CONDITIONS, 3
INCLUDING DOWNPOUR RAIN, CYCLONE ACTIVITY AND FLOODING. THIS WEATHER RESULTED IN VARYING EXTENTS OF DAMAGES TO THE HOMES AND PROPERTIES OF GRAND BAHAMIANS. WE UNDERSTAND THAT THIS NEW DAY GOVERNMENT HELD A MEETING AND WALKABOUT WITH STAKEHOLDERS IN THE COMMUNITY YESTERDAY, BUT THERE WERE NO MEMBERS OF THE OPPOSITION PRESENT OR INVITED. I RAISE THIS ISSUE BECAUSE AS IT STANDS GRAND BAHAMA IS REPRESENTED LARGELY BY OPPOSITION MEMBERS. I FIND IT STRANGE THAT THESE MEMBERS AND THESE CONSTITUENCIES WERE NOT REPRESENTED AT THIS MEETING, EVEN THOUGH THEY ALSO RESIDE ON THE SAME ISLAND. I THOUGHT THIS NEW DAY GOVERNMENT WAS ABOUT ALL BAHAMIANS AND NOT JUST SOME. 4
I GUESS ONLY BAHAMIANS IN TWO GB CONSTITUENCIES DESERVE TO BE HEARD. BUT MADAM SPEAKER: ALL THE PEOPLE OF GRAND BAHAMA AND ABACO ARE STILL REELING FROM THE RAVAGES OF HURRICANE DORIAN. THERE ARE STILL HOMES TO BE REPAIRED AND THE MENTAL/EMOTIONAL IMPACT AND PAIN FROM ALL THE LOSS IS STILL STRONG. IN THAT REGARD, I WAS PLEASED TO HEAR THE PRIME MINISTER SAY THAT THEY HAVE ALREADY MADE PROGRESS WITH NEW BUILDING CODE STANDARDS DESIGNED FOR AN ERA OF CLIMATE CHANGE AND ADVERSE WEATHER EVENTS. WHILE SERVING IN THE LAST ADMINISTRATION, I OVERSAW A VERY IMPORTANT REVIEW OF THE COUNTRY’S BUILDING CODE IN THE AFTERMATH OF HURRICANE DORIAN AND A DETAILED REPORT OF CHANGES, UPDATES AND RECOMMENDATIONS WERE MADE. IT IS MY HOPE THAT THIS ADMINISTRATION 5
UTILIZED THE RESEARCH AND HARD WORK OF OUR PUBLIC SERVANTS TO ADVANCE THIS ISSUE FORWARD. MADAM SPEAKER: WHILE WE ARE ON GRAND BAHAMA AND THE IMMEDIATE NEEDS OF ITS PEOPLE, I UNDERSTAND THE GRAND LUCAYAN SALE IS NOT FINALIZED BUT A LETTER OF INTENT OR MEMORANDUM OF UNDERSTANDING SIGNED. I POSE THESE QUESTIONS TO THE NEW DAY GOVERNMENT… 1. WILL THE GOVERNMENT TABLE THIS DOCUMENT AND WHEN? 2. DOES THE GOVERNMENT HAVE ANY CONCERN THAT THE INDICATED SALES PRICE WILL BE MODIFIED AS A RESULT OF NEGOTIATIONS AND DEMANDS FOLLOWING DUE DILIGENCE? 3. HAS THE GOVERNMENT BUDGETED ANY AMOUNTS FOR ONGOING SUPPORT FOR THE 6
PROPERTY UNTIL IT IS SOLD, AND IF SO, HOW MUCH? AND HOW MUCH FOR CONTINUED MARKETING AND AIRLIFT SUPPORT THEREAFTER? 4. FURTHER WILL THE AUDITOR GENERAL HAVE ACCESS TO AUDIT THESE FUNDS? 5. ADDITIONALLY, HAS THE GOVERNMENT BUDGETED SUPPORT FOR THE GRAND BAHAMA AIRPORT PENDING FINDING A PARTNER? IF SO, HOW MUCH, AND WHEN DOES THE GOVERNMENT ANTICIPATE FINDING A PARTNER? 6. HAS ANY AMOUNT BEEN BUDGETED FOR CONCESSIONS AND SUPPORT THAT MAY BE NEGOTIATED AS A PART OF ANY DEAL THIS FISCAL YEAR? IF NOT, WHY NOT? MADAM SPEAKER: IT’S NO SECRET THAT GRAND BAHAMA IS IN DIRE NEED OF LOVE AND ATTENTION. I THINK BOTH SIDES EAGERLY WANT TO SEE A 7
REINVIGORATION OF THE ISLAND. THE HEALTHCARE SERVICES AND ECONOMY ON GRAND BAHAMA MUST BE ONE OF THE GOVERNMENTS BIGGEST PRIORITIES. MADAM SPEAKER: WE MUST ALSO CONTINUE TO SOUND THE ALARM ON ONE OF THE MOST BURGEONING ISSUES ACROSS THE GLOBE — FOOD SECURITY. WE’VE SEEN THE EFFECT THAT NATURAL DISASTERS, HEALTH CRISIS, AND THE HOSTILE EASTERN EUROPEAN CONFLICT HAS HAD ON HOW PEOPLE NAVIGATE LIFE TODAY. THINGS ARE HARDER NOW. GAS HAS GONE UP AND CONTINUES TO MOVE UP — BUT I’LL GET BACK TO THAT LATER — AND IT HAS BECOME MORE EXPENSIVE TO FEED A FAMILY. NOW MORE THAN EVER WE MUST SHIFT THE FOCUS ON ENSURING THAT BAHAMIAN FAMILIES HAVE THE CAPACITY TO FEED THEMSELVES. 8
A PLACE WHERE WE DON’T HAVE TO PAY THE OVERPICED COST FOR IMPORTATION AND INFLATION. MADAM SPEAKER: SINCE COMING INTO OFFICE IN MAY 2017 AND GRACIOUSLY BEING REELECTED LAST SEPTEMBER, THE RESILIENT RESIDENTS OF CENTRAL GRAND BAHAMA HAVE PARTNERED WITH ME AND MY TEAM TO FORGE AHEAD WITH A FOCUSED INITIATIVE TO PROMOTE BACKYARD FARMING WITHIN AND THROUGHOUT OUR COMMUNITIES. WE STARTED OFF WITH JUST A SMALL DEVELOPMENT OF THREE ACRES OF LAND ON THE MALL DRIVE WHERE AN ASSORTMENT OF VEGETABLES WAS GROWN. COUNTLESS HOURS OF TIME AND EFFORT BY A TEAM OF VOLUNTEERS INCLUDING RESIDENTS, CHURCHES AND STUDENTS HAVE BEEN PUT IN TO CULTIVATE THIS PROPERTY. 9
WE ARE GROWING DELICIOUS PRODUCE THAT IS CONSUMED EVERYDAY AT LITTLE TO NO COST. WE HAVE BREADFRUIT PLANTS, BELL PEPPERS, DILL, SWEET POTATOES, CASSAVA, ONIONS AND SCALLIONS, BANANAS AND I CAN’T FORGET OUR FAMOUS EGGPLANT. AS A RESULT OF THIS INITIATIVE, WE HAVE DISTRIBUTED HUNDREDS OF BACKYARD FARMING KITS TO RESIDENTS WHO THEMSELVES HAVE DEVELOPED GREEN THUMBS. WE’VE HAD MULTIPLE EDITIONS OF OUR POPULAR FARMERS MARKET FEST, GIVING RESIDENTS A CHANCE TO SELL THEIR FARM PRODUCE AND HANDMADE CRAFTS FOR SOME ADDITIONAL INCOME AND EXPOSURE. MADAM SPEAKER, AS I’VE SAID BEFORE IN THIS HOUSE, I VOW TO ENSURE THIS PROGRAM IS NOT JUST SUSTAINED BUT ALSO EXPANDED TO ITS FULLEST EXTENT. DISCUSSIONS ARE STILL ONGOING WITH HARCOURT DEVELOPMENT TO CREATE A 10
MUCH-NEEDED PARK IN SOUTH BAHAMIA. WE RECOGNIZE THE IMPORTANCE OF THIS INIATITIVE, NOT JUST FOR CENTRAL GRAND BAHAMA, BUT FOR THE WHOLE BAHAMAS. THE FORMER GOVERNMENT HAD ALREADY BEGAN MAKING MOVES TO COMBAT THIS IMPORTANT ISSUE. UNDER THE VISION OF OUR NOW LEADER THE HON. MICHAEL PINTARD, THERE WAS THE FORESIGHT TO CREATE AN AGROVILLAGE TO ACT AS AN INCUBATION HUB FOR AGRICULTURAL ENTHUSIASTS. GOVERNMENTS ARE CONTINUOUS. I SUGGEST THE GOVERNMENT CONTINUE THIS PROJECT AND GO FURTHER. THERE WERE MULTIPLE CROWN LAND GRANTS MADE AVAILABLE WITH EVEN MORE TO BE GIVEN AND HUNDREDS OF ACRES IN THE 11
POSSESSION OF THE MINISTRY OF AGRICULTURE THAT COULD BE MAXAMIZED FOR FARMING PURPOSES I REITERATE THAT WE MUST TAKE A SERIOUS POSITION. THAT MEANS MAKING BOLD MOVES AND INTENTIONAL DECISIONS. THE GOVERNMENT SHOULD PROVIDE ENERGY CONCESSIONS TO ALLOW LOCAL FARMERS TO COMPETE WITH U.S. BASED FARMERS BECAUSE THEY ARE ABLE TO PRODUCE AT A LOWER COST THAN LOCAL FARMERS. IT CONFUSES ME THAT THIS NEW DAY ADMINISTRATION SAYS IT CARES ABOUT LOCAL FARMERS BUT MADE INTERNATIONALLY IMPORTED PRODUCE DUTY FREE. WHY ARE YOU MAKING IT MORE DIFFICULT FOR LOCAL FARMERS TO COMPETE? EGGS, CHICKENS, BROCCOLI, CARROTS, SPINACH, CUCUMBER, BEANS AND CABBAGE CAN ALL BE 12
FOUND HERE IN THIS BAHAMAS. GIVE OUR BAHAMIANS A FIGHTING CHANCE. YOU SAY THAT NEW PRODUCTION IS NOT GOING TO HAPPEN OVERNIGHT AS IF WE DON’T ALREADY HAVE GREAT BAHAMIANS WHO HAVE BEEN PUTTING IN THE WORK ALREADY AND SIMPLY NEED A BOOST. MADAM SPEAKER, WHILE IN OFFICE, THE FREE NATIONAL MOVEMENT STARTED AN INNOVATIVE INITIATIVE TO MAKE IT MANDATORY FOR HOTELS AND CRUISE SHIPS TO PURCHASE 40 PERCENT OF THEIR PRODUCE FROM LOCAL FARMERS. ADDITIONALLY, THE INITIATIVE WOULD HAVE ENSURED THAT 75 PERCENT OF WHAT THE GOVERNMENT PURCHASES IS SOURCED LOCALLY. WHY HASN’T THIS INITIATIVE BECOME LEGISLATION YET? 13
IT’S CURRENTLY A CABINET POLICY PAPER, BUT NOT AN ENFORCED POLICY. WHEN WILL THIS GOVERNMENT MOVE ON IT? THE OPPORTUNITIES ARE JUST SITTING WAITING BE SHARED WITH THE BAHAMIAN PEOPLE. HOW LONG WILL THIS CUSTOMS REDUCTION LAST? HOW LONG MUST BAHAMIAN FARMERS CONTINUE TO COMPETE AT AN UNREALISTIC LEVEL WITH GLOBAL IMPORTS. WE MUST EMPOWER OUR BAHAMIANS IN EVERY WAY POSSIBLE. MADAM SPEAKER: THERE ARE AMAZING BAHAMIANS ACROSS THE ARCHIPELAGO WHO HAVE DECIDED TO GO BACK TO FARMING BUT IT’S NOT ENOUGH. THERE ALSO NEEDS TO MULTIPLE BAHAMIANS EMPOWERED IN POULTRY PRODUCTION, FISHING, BUSH MEDICINE AND MORE. THERE’S SO MUCH WE CAN DO. I BELIEVE THE GOVERNMENT SHOULD 14
RE-ALLOCATE A PORTION OF THE 50M IN SMALL BUSINESSES DEVELOPMENT SPECIFICALLY FOR FARMING OPERATIONS, THEREFORE PROVIDING FUNDING FOR THOSE WHO WANT TO START A SMALL OR MEDIUM SIZE FARM. THE MORE FARMERS WE HAVE, THE MORE WE CAN GROW AND THE LESS WE WILL HAVE TO EXPORT MADAM SPEAKER, I DO BELIEVE THAT THIS NEW ADMINISTRATION HAS THE WILL TO INVEST IN THIS AGENDA. BUT WE MUST SEE ACTION. WE HAVE A VERY LONG WAY TO GO AS A COUNTRY AND MORE NEEDS TO BE DONE IN THE OVERALL INDUSTRY TO REALLY BE SERIOUS ABOUT FOOD PRODUCTION. ULTIMATELY — IN ORDER TO ACHIEVE TRUE FOOD SECURITY, WE HAVE TO HEAVILY ARM OUR PEOPLE WITH THE KNOWLEDGE, LAND AND FUNDING TO BEGIN MULTIPLE TYPES OF 15
AGRICULTURE AND AQUACULTURE — THAT IS TRUE INDEPENDENCE. BAHAMIANS MUST BE EMPOWERED. WE MUST ARM THEM WITH THE TOOLS NEEDED TO REALLY MAKE THIS INDUSTRY VIABLE. THEN WE CAN START TO HAVE REAL CONVERSATIONS ABOUT SELF-SUFFICIENCY. OUTSIDE OF THAT, IT’S ALL LIP SERVICE. BUDGET RESPONSE MADAM SPEAKER: WHEN THIS NEW DAY ADMINISTRATION CAME INTO OFFICE, THEY PROMISED INNOVATION AND REVOLUTION FOR BAHAMIANS. THEY PAINTED THEMSELVES AS THE SAVIOURS OF THE COUNTRY, BUT ALL WE HAVE HEARD SO FAR IS A CUT-AND-PASTE LACKLUSTRE PRESENTATION OF SIDE ORDERS….BUT WHERE’S THE MEAT? THIS WAY FORWARD BUDGET DOESN’T DO ENOUGH AND DOES NOT COME CLOSE TO 16
SERIOUSLY ADDRESSING THE MANY CHALLENGES BAHAMIANS ARE FACING TODAY. I WONDER, MADAM SPEAKER, DOES THIS BUDGET REPRESENT THE ENTIRE EFFORT? OR IS THERE MORE. BECAUSE THE BAHAMIAN PEOPLE WANT TO KNOW. WE NEED REAL INNOVATION, REAL CHANGE, REAL REFORM, AND REAL RELIEF. EVEN MOODY’S QUESTIONS THIS ADMINISTRATIONS BUDGET, CALLING THE GOVERNMENTS REVENUE PROJECTIONS “OVERLY-OPTIMISTIC”. THE CREDIT RATINGS AGENCY EVEN WARNED THAT THIS COULD BE A REAL THREAT TO BRINGING THE US$10.5 BILLION NATIONAL DEBT UNDER CONTROL. 17
“KEY RISKS TO THE BUDGET ARE OVERLY OPTIMISTIC REVENUE COLLECTION PROJECTIONS IN THE ABSENCE OF CONCRETE MEASURES TO BROADEN THE TAX BASE, AND THE INABILITY TO MANAGE SPENDING IN LINE WITH TARGETS,” THE CREDIT RATING HAS BEEN QUOTED SAYING IN A CREDIT NOTE TO INVESTORS. “SPECIFICALLY, THE GOVERNMENT EXPECTS TO KEEP PRIMARY RECURRENT SPENDING UNCHANGED OVER THE NEXT TWO FISCAL YEARS, WHICH WOULD REDUCE REAL SPENDING GIVEN 15 PERCENT NOMINAL GROWTH OVER THE SAME PERIOD. ALSO, THE GOVERNMENT’S ASSUMPTIONS FOR INTEREST EXPENDITURE IMPLY A DECLINE IN THE AVERAGE COST OF DEBT DESPITE A RISING GLOBAL INTEREST RATE 18
ENVIRONMENT.” MADAM SPEAKER: WE NEED THIS NEW DAY GOVERNMENT TO BE REALISTIC WITH THE BAHAMIAN PEOPLE. THE MINISTER OF FINANCE HAS REPORTED IN HIS BUDGET COMMUNICATION THAT REVENUE FOR THE FISCAL YEAR HAS BEEN OUTPERFORMING BUDGETED NUMBERS AND THAT DEBT TO GDP HAS DROPPED BY 20 POINTS, YET YOU HAVE BROUGHT A RESOLUTION TO BORROW ANOTHER $700 MILLION FOR THE 2022/2023 FISCAL YEAR. DOES THIS INDICATE THAT THE GOVERNMENT EXPENDITURE HAS OUTSTRIPPED THAT INCREASE IN REVENUE AND NOW EXCEEDS THE SUPPLEMENTAL BUDGET PASSED JUST A FEW WEEKS AGO? HOW AGGRESSIVE ARE THESE OVERALL 19
REVENUE PROJECTIONS FOR THE NEW YEAR, GIVEN THE NUMBER OF CONCESSIONS PROPOSED AND THE FACT THAT THE U.S. ECONOMY SEEMS TO BE TEETERING ON RECESSION? JUST TWO WEEKS AGO THE BAHA MAR PRESIDENT SAID THEY WERE “CAUTIOUSLY OPTIMISTIC” ABOUT THE NEXT FEW MONTHS AHEAD BECAUSE OF CONCERNS IN FALL OFF OF BOOKING PACE. ARE YOU CONCERNED ABOUT THE SUMMER BOOKINGS TO THE BAHAMAS AND HAS THIS BEEN FACTORED INTO YOUR PROJECTIONS? THE PRIME MINISTER NOTED THAT HIS ADMINISTRATION STILL HAS A NUMBER OF INHERITED ARREARS THAT IT BELIEVES MUST BE LIQUIDATED. THIS NEW DAY GOVERNMENT CAME TO THE BOTH LOWER AND UPPER CHAMBERS AND TALKED ABOUT A NUMBER OF LEGAL MATTERS WITH SIGNIFICANT FINANCIAL LIABILITY TO THE BAHAMIAN TAXPAYER. 20
WILL THE GOVERNMENT DISCLOSE THE RATIONALE BEHIND THOSE SETTLEMENTS, THE AMOUNTS PAID OUT AND TO WHO, OR THE NATIONAL SECURITY INTEREST BEING PROTECTED BY NON-DISCLOSURE OF SUCH PAYMENTS AS REQUIRED BY THE PUBLIC FINANCIAL MANAGEMENT ACT AND FISCAL RESPONSIBILITY ACT? MADAM SPEAKER: WITH SUCH URGENCY TO PAY OFF THESE ARREARS, WHY WAS THERE LITTLE TO NO MENTION IN THE COMMUNICATION REGARDING THE GOVERNMENT'S DEBT MANAGEMENT STRATEGY. WHAT IS THE STATUS OF THE DEBT MANAGEMENT COMMITTEE AND WHEN CAN THE PUBLIC EXPECT DETAILS OF THIS STRATEGY AND THE BENEFITS TO THE FISCAL STRATEGY? 21
GIVEN THE DEPARTURE FROM THE FISCAL STRATEGY AND LACK OF A COMPREHENSIVE DEBT PAYMENT PLAN ANNOUNCED, DO YOU ANTICIPATE ANY FURTHER SOVEREIGN CREDIT RATING DOWNGRADE OVER THE SUMMER? ONCE AGAIN, I NOTE THAT THE PRIME MINISTER MADE NO MENTION OF MAJOR TAX REFORM. GIVEN THAT THE COUNTRY HAS EXPRESSED SUPPORT FOR THE GLOBAL MINIMUM CORPORATE TAX, DOES THIS SIGNAL THE CURRENT ADMINISTRATION INTENTION TO WITHDRAW ITS SUPPORT FOR THE INITIATIVE OR TO STALL PROGRESS ON IT UNTIL FORCED TO DO SO AS IT DOES WITH ALL INTERNATIONAL FINANCIAL SERVICES INITIATIVES? THE GOVERNMENT IS PROJECTING A $500 MILLION INCREASE IN VAT COLLECTIONS I BELIEVE, EQUAL TO 25%. ON WHAT BASIS? THE DEFICIT TARGET EXCEEDS THE FISCAL STRATEGY TARGETS THEY PRODUCED IN THEIR 22
FISCAL STRATEGY REPORT JUST A FEW MONTHS AGO. THE FINANCIAL SERVICES REGULATORY AUTHORITY DOES NOT PERMIT THIS UNLESS THEY INVOKE THE EXCEPTION CLAUSE. MADAM SPEAKER: I SIMPLY ASK, IS THE BUDGET IN LINE WITH THE FISCAL STRATEGY REPORT RECENTLY DEBATED IN PARLIAMENT. AND IF NOT, IS THE GOVERNMENT COMMITTED TO INVOKING THE EXCEPTIONS CLAUSE AND ON WHAT BASIS? WE BELIEVE THAT INVOKING THE EXCEPTION CLAUSE WHILE CLAIMING SUCH AN INCREASE IN REVENUE AND BEATING REVENUE TARGETS FOR 2021/22 WOULD BE INCONSISTENT WITH THE INTENT AND DETAILS OF THE ACT. THE CONDITIONAL CASH TRANSFER PROGRAM DID NOT WORK, AND RESULTS WERE NOT ACHIEVED IN ITS LAST ITERATION IN 23
ACCORDANCE WITH THE GOVERNMENT’S OBJECTIVE AND THE IDB CRITERIA. WHAT MAKES THE GOVERNMENT CONFIDENT THAT IT WILL BE SUCCESSFUL THIS TIME? THESE ARE VERY IMPORTANT QUESTIONS THAT MUST BE ANSWERED. MADAM SPEAKER: WHEN THE FORMER GOVERNMENT LEFT OFFICE, THE NEW DAY ADMINISTRATION GOVERNMENT MET AN ECONOMY ON THE UPTICK. THE MINNIS ADMINISTRATION TOOK THE COUNTRY FROM A DECADE OF NO GROWTH TO A CONSECUTIVE PERIOD OF ECONOMIC GROWTH PRIOR TO HURRICANE DORIAN AND THE PANDEMIC. ONCE THE COUNTRY WAS HIT BY THE HISTORIC STORM AND GLOBAL HEALTH CRISIS, WE MOVED TO IMPLEMENT SEVERAL INITIATIVES TO KEEP THE FISCAL GAIN WE HAD OVER THE PREVIOUS YEARS. 24
THE FORMER GOVERNMENT PROVIDED UNPRECEDENTED SUPPORT TO BAHAMIAN ENTREPRENEURS AND SMALL BUSINESSES AND ESTABLISHED THE SMALL BUSINESS DEVELOPMENT CENTRE (SBDC/ACCESS ACCELERATOR) TO PROVIDE DIRECT SUPPORT AND FUNDING FOR ENTREPRENEURS. MUCH OF THE PERFORMANCE BEING REPORTED CAN BE TIED DIRECTLY TO THE ARDUOUS WORK OF THE PREVIOUS ADMINISTRATION. MADAM SPEAKER: IT WOULD BE A SHAME IF THIS NEW DAY GOVERNMENT FLUSHES ALL THAT HARD WORK DOWN THE DRAIN. WE UNDERSTAND AND ACKNOWLEDGE THAT GOVERNMENTS ARE CONTINUOUS AND WE WANT THEM TO SUCCEED. BUT WE ALSO WANT TO MAKE SURE THEY DO IT RIGHT! 25
INFLATION MADAM SPEAKER: SINCE THE START OF THE RUSSIA-UKRAINE WAR IN EASTERN EUROPE, THE PRICE OF GAS HAS SKYROCKETED AND THE OVERALL COST OF LIVING HAS AS WELL. WE ARE ALREADY SEEING GAS PRICES ON NEW PROVIDENCE INCREASING ON A DAILY BASIS, HITTING $7 A GALLON, AND SLOWLY CREEPING TO NEARLY $8. THERE WAS VERY LITTLE, OR NO ATTENTION PAID TO BPL AND THE COST OF ENERGY. DOES THE GOVERNMENT HAVE A STRATEGY TO DEAL WITH INCREASED ENERGY FUEL COST AS WELL AS COST OF FUEL AT THE PUMP? I CRY FOR MY PEOPLE, RESIDENTS ON GRAND BAHAMA AND THE FAMILY ISLANDS — WHO ARE ALREADY EXPERIENCING HIGH GAS PRICES. 26
CAN YOU IMAGINE THE ADDITIONAL BURDEN THEY WILL BE FACED WITH IN THE MONTHS TO COME? THE POSSIBLE IMPACT TO ELECTRICITY COSTS, COST OF TRANSPORTATION, COSTS OF TRAVEL, COST OF IMPORTATIONS, COST OF FOOD, SHIPPING AND LOGISTICAL ISSUES. THE PRIME MINISTER HAD ANNOUNCED THAT HE WAS WORKING WITH SHIPPING COMPANIES TO LOWER THE COST OF FREIGHT TO REDUCE THE IMPACT OF HIGHER FOOD AND IMPORT COST. THE PRIME MINISTER HOWEVER FAILED TO MENTION IN HIS COMMUNICATION ANY PROGRESS ON HIS DISCUSSIONS AND WHEN BAHAMIANS MAY SEE THE RESULTS OF HIS EFFORTS IN THE CONSUMPTION OF THESE IMPORTS? HAS THE PRIME MINISTER GIVEN UP ON THOSE EFFORTS AND IF NOT, WHEN CAN BAHAMIANS EXPECT TO SEE RESULTS VERSUS MORE RHETORIC? 27
MADAM SPEAKER: BAHAMIANS ARE READY FOR RELIEF. OUR REGIONAL PARTNERS HAVE LED THE WAY TO DEPLOY THEIR OWN STRATEGIES FOR THEIR PEOPLE, PROVIDING RESTITUTE FOR HIGH ENERGY COSTS. GIVE US THE PLANS FOR SOCIAL SERVICE ASSISTANCE, FOOD SECURITY AND INFLATION PROTECTION FOR BAHAMIANS IN THESE INCREASINGLY HARD TIMES. THIS ADMINISTRATION HAS WAVED THE MINIMUM WAGE CARROT FOR MONTHS, BUT HAS THERE BEEN ANY CONSIDERATION OF THE INFLATIONARY EFFECT ON BUSINESS THE INCREASE IN MINIMUM WAGES WILL HAVE AT THIS TIME WHEN OTHER MEASURES ARE INTENDED TO HELP REDUCE INFLATION? DOES THIS ADMINISTRATION SIMPLY HAVE NO NEW IDEAS OUTSIDE OF BEING A 'COPY AND PASTE GOVERNMENT”? 28
WE HAVE SAID BEFORE THAT THE GOVERNMENT MADE A GRAVE MISSTEP IN DECREASING VAT AND ADDING THE TAX BACK ON BREADBASKET ITEMS, MEDICINE, INSURANCE, BABY FOOD AND PRODUCTS, MEDICINES AND FEMININE PRODUCTS THAT WERE PREVIOUSLY ZERO RATED UNDER THE FORMER ADMINISTRATION. THEY HAD NO FORESIGHT TO SEE HOW THEIR DECISION IS ULTIMATELY HURTING BAHAMIANS. I ECHO THE OPPOSITION’S DEMAND THAT THE GOVERNMENT BRING BACK THE HIGHLY EFFECTIVE VAT HOLIDAYS FOR HURRICANE SEASON AND FOR BACK-TO-SCHOOL SHOPPING THAT WERE INTRODUCED AND IMPLEMENTED BY THE FNM. IT WILL BE THE POORER HOUSEHOLDS THAT WILL BEAR THE BRUNT OF THESE RISING PRICES. THE MARINA INDUSTRY HAS ALSO EXPRESSED CONCERN OVER THE PLAN TO NOW SUBJECT CHARTERS IN BAHAMIAN WATERS TO VAT, SUCH 29
THAT THESE CHARTERS WILL NOW AMOUNT TO 14 PERCENT (4 PERCENT CHARTER FEE + 10 PERCENT VAT). WE UNDERSTAND OTHER CARIBBEAN COUNTRIES DO NOT CHARGE VAT ON THEIR ALREADY CHEAPER CRUISE FEE. DO YOU HAVE ANY CONCERN THAT THIS INCREASE WILL DETER THIS LUCRATIVE INDUSTRY AND CAUSE DOWNSTREAM REDUCTION IN WAGES AND CONSUMER SPEND FROM YACHT PATRONS AND MARINA EMPLOYEES? DO YOU NOT RECOGNISE THAT THIS COULD ESSENTIALLY DRIVE BUSINESS INTO THE DOORS OF OUR COMPETITION? I JUST WANT TO KNOW, WHO’S SLEEPING AT THE HELM HERE? MADAM SPEAKER: VERY PLAINLY, I ASK, ONCE AGAIN, HAS THIS ADMINISTRATION BEGAN TO TAKE ANY STEPS TO 30
MITIGATE THE PENDING EFFECTS FROM THE GROWING INFLATION. WHAT SOCIAL SERVICE SUPPORT IS BEING IMPLEMENTED TO HELP THE MOST VULNERABLE IN THE COMMUNITY. THE PRIME MINISTER ANNOUNCED A RASH OF REDUCTIONS ON DUTY FOR ELECTRIC VEHICLES AND INCREASING THE FLEET OF SUCH VEHICLES USED BY GOVERNMENT. HAS THE GOVERNMENT CONSIDERED THE REVENUE IMPACT OF THE DUTY REDUCTION AND HOW IT WILL OFFSET THE LUCRATIVE TAXES GOVERNMENTS EARNS DUE TO ANY APPRECIABLE REDUCTION IN FUEL SALES? THE PRIME MINISTER ANNOUNCED THAT REAL PROPERTY TAX WILL NOW BE COLLECTED BY BANKS, AS A PART OF THEIR MORTGAGE ESCROW PAYMENT TOGETHER WITH HOME INSURANCE PRESUMABLY. DOES THE GOVERNMENT HAVE ANY CONCERN THAT THIS INCREASED TO THE PAYMENT MAY 31
PUSH SOME HOMEOWNERS OVER THE EDGE AND CREATE DEFAULTS FOR MARGINAL HOME QUALIFIERS AND SECONDLY, MAKE OTHER POTENTIAL HOMEOWNERS UNQUALIFIED BECAUSE OF THE HIGHER MONTHLY PAYMENTS? WILL THIS DEFEAT THE PUSH TOWARDS HOMEOWNERSHIP, ESPECIALLY BY THE MARGINAL COMMUNITIES? THE SHIFT BACK TO BANK LICENSE FEES VERSUS THE FEE REGIME IMPLEMENTED BY THE PREVIOUS ADMINISTRATION SEEMS TO PUSH THE FINANCIAL INDUSTRY BACK INTO DEFAULT AND CONFLICT WITH OECD HARMFUL TAX RULES AGAINST RING-FENCING. DOES THE GOVERNMENT HAVE ANY CONCERN OVER NEW BLACKLISTING AS A RESULT? THE PRIME MINISTER COMMUNICATED THE ESTABLISHMENT OF AN INFRASTRUCTURE DEVELOPMENT FUND AND A FAMILY ISLAND 32
DEVELOPMENT FUND TO BE FUNDED BY REBATE OF TAXES DERIVED FROM THE ISLANDS. IF THE ALLOCATION OF DEVELOPMENT FUNDS IS STRICTLY IN PROPORTION TO TAXES, WON'T THIS CREATE FURTHER UNEVEN DEVELOPMENT ACROSS THE ISLANDS AS THIS WITH A LOWER TAX BASE COLLECT LESS AND THUS WILL BE RELATED LESS? OUR FAMILY ISLANDS DESERVE MORE THAN JUST LEFTOVERS. THEY DESERVE CONCERTED EFFORT. PLANNING. REAL INVESTMENT. FAMILY ISLANDERS ARE TIRED OF BEING TREATED A GUESTS IN THEIR COUNTRY, OR STEPCHILDREN TO NEW PROVIDENCE. THERE IS SO MUCH TO OFFER ON OUR FAMILY ISLANDS AND THEY DESERVE A CHANCE. MADAM SPEAKER, IT HAS NOW BEEN OFFICIALLY TWO YEARS SINCE THE BAHAMAS CONFIRMED ITS FIRST CASE OF COVID-19 ON MARCH 15, 2020. 33
IN LESS THAN A FEW DAYS OF THIS CONFIRMATION, THE GOVERNMENT OF THE DAY HAD ALREADY BEGAN IMPLEMENTING MITIGATION EFFORTS TO STOP A POSSIBLE SPREAD WHEN WE KNEW NOTHING ABOUT THE VIRUS. IT WAS THIS PROACTIVE ACTION IN THE EARLY DAYS THAT SAW STRINGENT MEASURES MEANT TO PROTECT BAHAMIANS, SO MUCH SO THAT CONFIRMED CASES REMAINED SIGNIFICANTLY LOW IN THOSE EARLY DAYS. BUT NOW WE ONCE AGAIN BRACE OURSELVES AS MORE CASES ARE CONFIRMED ACROSS THE COUNTRY. THE OPPOSITION IS CLOSELY WATCHING THE POSITIVITY RATE, THE NUMBER OF IMPORTED CASES, THE HOSPITALISATIONS, AND THE DEATHS. MADAM SPEAKER: WE NEED TO REFOCUS OUR FIGHT IN THIS PANDEMIC. ESPECIALLY AS WE SEE MORE 34
GLOBAL HEALTH THREATS SUCH AS MONKEY POX. ARE OUR HEALTHCARE FACILITIES AND WORKERS READY FOR ANOTHER ROUND? THIS IS THE WORRY OF BAHAMIANS AND BUSINESSES ACROSS THE COUNTRY WITH THINGS JUST BEGINNING TO SEE A REBOUND. WHAT WILL HAPPEN NEXT? MADAM SPEAKER: I BELIEVE THAT WORRYING DOESN’T DO US MUCH GOOD. WE MUST ACT. WE MUST ENSURE THAT THE FACILITIES ARE READY, BED CAPACITY IS AT A MAXIMUM AND EQUIPMENT AND MATERIALS ARE IN ABUNDANCE. WE MUST ALSO ENSURE THAT THE HEALTHCARE WORKERS ARE PREPARE. THIS MEAN GIVING THEM THE ASSISTANCE THEY NEED. THE HUNDREDS OF NEW NURSING STUDENTS WHO RECENTLY GRADUATED MUST BE 35
ENCOURAGED TO STAY HOME AND WORK IN OUR HOSPITALS BECAUSE THEY ARE SO OFTEN POACHED BY THE WORLD WHO SEE THEIR VALUE. WE MUST BE PREPARED BECAUSE COVID IS STILL VERY MUCH A THREAT. IT SEEMS HOWEVER THAT THE URGENCY TO TACKLE THE VIRUS HAS BEEN REPLACED WITH IMMEDIATE NEED TO JET SET. TRAVEL EXPENSES MADAM SPEAKER: AFTER CRITICISING THE FORMER ADMINISTRATION OVER ITS TRAVELS, THIS NEW DAY ADMINISTRATION HAD INCREASED ITS TRAVEL BUDGET BY $4.1 MILLION, BUDGETING $14.8 MILLION ON TRAVEL AND SUBSISTENCE FOR THE UPCOMING FISCAL YEAR FOR BOTH DOMESTIC AND INTERNATIONAL TRAVEL. 36
THIS IS A COMPLETE CHANGE FROM JUST OVER ONE YEAR AGO WHEN THE NOW PRIME MINISTER LASHED THE GOVERNMENT ON ITS INCREASE TO THE TRAVEL. THE NOW PRIME MINISTER BEMOANED THE MINNIS ADMINISTRATION’S DECISION BUT NOW THAT THE SHOE IS ON THE OTHER FOOT, HE RECOGNISES THE IMPORTANCE OF ENGAGING INTERNATIONALLY AND CREATING MUTUALLY BENEFICIAL NEW OPPORTUNITIES. THE MINNIS ADMINISTRATION HAD A ROBUST PLAN FOR THE BAHAMAS INTERNATIONAL PARTNERSHIPS BUT WE HAD TO SHIFT FOCUS TO THE PRESSING MATTERS AT HAND — HURRICANE DORIAN AND THE COVID-19 PANDEMIC. I WOULD LIKE TO POINT OUT THAT WHEN COVID-19 HIT, OUR ADMINISTRATION 37
CANCELLED ALL TRIPS AND ENSURED THAT THAT MONEY WAS USED FOR THE BENEFIT OF THE BAHAMIAN PEOPLE. THIS NEW DAY GOVERNMENT THAT HAS BEEN IN SINCE SEPTEMBER HOWEVER HAS SQUANDERED THE BAHAMIAN TAXPAYERS’ MONEY AS WE CONTINUE TO BATTLE CRISIS AFTER CRISIS. THE PRIME MINISTER’S JUSTIFICATION FOR THE INCREASE IS THAT “THEY DON’T KNOW WHAT TRAVELS WILL COME UP THIS YEAR” AND THAT JUST BECAUSE THE FUNDS ARE ALLOCATED DOESN’T MEAN IT WILL BE USED. HIS PRESS SECRETARY, WHO WE HEAR FROM NOW A DAYS MORE THAN HIM, CLAIMS THE PRIME MINISTER IS IN “HIGH DEMAND” GLOBALLY. I DON’T KNOW WHO THEY THINK THEY ARE 38
TRYING TO FOOL, BUT THE BAHAMIAN PEOPLE ARE NOT EASILY CONNED. IT SEEMS VERY TWO FACED AND I JUST WANT TO KNOW WHICH FACE I SHOULD BE TALKING TO AT WHICH TIME. …FOOD LOCALLY IS IN HIGH DEMAND…..JOBS ARE IN HIGH DEMAND LOCALLY, HEALTHCARE IS IN HIGH DEMAND, WOMEN AND CHILDREN PROTECTION IS IN HIGH DEMAND. MINISTRY OF YOUTHS SPORTS AND CULTURE MADAM SPEAKER: DURING MY TIME TENURE IN GOVERNMENT, I WAS GIVEN THE OPPORTUNITY TO WEAR MULTIPLE HATS INCLUDING THE SUBSTANTIVE MINISTER OF YOUTH SPORTS AND CULTURE. FOR ME AS A FORMER ATHLETE, THIS WAS AN HONOR BECAUSE I HAD THE OPPORTUNITY TO REPRESENT THE INTERESTS OF THOSE ATHLETES THAT I ONCE WAS. 39
I CANNOT CONTINUE TO STRESS ENOUGH THAT YOUTH, SPORTS AND CULTURE ARE THREE OF THE MAJOR FABRICS OF OUR BAHAMIAN IDENTITY THAT REQUIRE INVESTMENTS AT THE HIGHEST LEVEL. I HOPE THIS NEW DAY GOVERNMENT WILL FURTHER INVESTMENT IN THESE AREAS. MADAM SPEAKER: THOUGH HE BARELY TOUCHED ON THE LEVEL OF INJECTION HIS ADMINISTRATION INTENDS TO PUT INTO THE INDUSTRIES, THE PRIME MINISTER ADVISED THAT THE COUNTY IS ATTRACTING MAJOR SPORTING EVENTS TO THE BAHAMAS THROUGH THE SPORTS IN PARADISE INITIATIVE TO DIVERSIFY THE TOURISM PRODUCT. THIS IS VERY ENCOURAGING. IT WILL BE EXCITING TO SEE THE BABE RUTH CARIBBEAN CHAMPIONSHIPS, CARIFTA TRACK AND FIELD CHAMPIONSHIPS, THE WORLD 40
ATHLETICS RELAYS, NORTH AMERICA CENTRAL AMERICA AND THE CARIBBEAN TRACK AND FIELD CHAMPIONSHIPS – ALL HOSTED HERE ON OUR BEAUTIFUL BAHAMIAN SHORES. ADDITIONALLY, THE PRIME MINISTER’S ANNOUNCEMENT OF THE GOVERNMENT’S FUNDING OF THE ELITE ATHLETES PROGRAMME TO INCREASE SUPPORT FOR BAHAMIAN ATHLETES AND SPORTING PROGRAMS IS ALSO ENCOURAGING TO SEE. IT WAS THE FNM GOVERNMENT THAT STARTED THE ATHLETES SUBVENTION PROGRAM. WE WERE SETTING THE STAGE FOR REWARDING OUR OLYMPIC AND OTHER NATIONAL ATHLETES WITH THE ACCOLADES THEY DESERVE. MADAM SPEAKER: I KNOW THE BLOOD, SWEAT AND TEARS THAT OUR ATHLETES INVEST JUST TO HAVE THE CHANCE TO PERFORM ON THE GLOBAL STAGE AND THEY HAVE EARNED THE SUPPORT. 41
WE HOPE THAT THIS GOVERNMENT WILL TAKE IT A STEP FURTHER AND PROVIDE THE NECESSARY TRAINING, FACILITIES AND EQUIPMENT TO ALLOW OUR ATHLETES TO REMAIN AT THE GLOBAL COMPETITIVE LEVEL WITHOUT HAVING TO STRUGGLE OR BEG FOR HELP. THIS MEANS CREATING AN OVERALL BETTER SUPPORT SYSTEM FOR OUR ATHLETES TO FLOURISH. THE PRIME MINISTER SUGGESTED THAT ANOTHER $42M MAY NEED TO BE SPENT ON THE NATIONAL BASEBALL STADIUM. HOW MUCH HAS ALREADY BEEN SPENT AND WHAT IS THE ANTICIPATED RETURN ON THAT INVESTMENT AND WHEN CAN BAHAMIANS EXPECT TO SEE THAT INVESTMENT PAY OFF? THE IMPORTANCE OF INVESTING IN OUR ATHLETES CANNOT BE UNDERSTATED AND MUST REMAIN A TOP PRIORITY FOR THIS NEW DAY GOVERNMENT. 42
BUT MADAM SPEAKER: WHAT ABOUT THE OTHER PARTS OF THE MINISTRY? YOUTH DEVELOPMENT AND CULTURE. IT IS THE UPMOST IMPORTANCE THAT WE ENSURE THAT A NATIONAL YOUTH POLICY IS ADVANCED AND IMPLEMENTED IN ORDER TO PROTECT OUR CHILDREN, EMPOWER OUR YOUTH AND PROVIDE OPPORTUNITIES TO SECURE THEIR FUTURES. ADDITIONALLY, WE MUST REFOCUS OUR ATTENTION ON JUST SELLING THE BAHAMAS. WE MUST CURATE OUR IDENTITY. PEOPLE COME TO OUR SHORES NOT ONLY FOR SUN, SAND AND SEA, BUT FOR A CHANCE TO EXPERIENCE EVERYTHING THAT IS TRULY BAHAMIAN. THIS IS THE MOST PRICELESS THING IN THE WORLD. THE GOVERNMENT MUST ENSURE THAT IT IS 43
DOING EVERTING IN ITS POWER TO REFINE THE BAHAMAS’ CULTURAL IDENTITY FOR THIS NEW GENERATION AND FOR THE WORLD TO PARTAKE IN. MADAM SPEAKER: NEXT YEAR THE BAHAMAS WILL CELEBRATE IT’S 50TH YEAR OF INDEPENDENCE. WE ARE QUICKLY APPROACHING THAT MILESTONE AND ARE ALREADY HEARING OF THE BIG BASHMENT BEING PLANNED. IT SEEMS TO ME AS IF THIS PRIME MINISTER IS TRYING TO SOLIDIFY HIS LEGACY. AND NO ONE CAN JUDGE HIM FOR DOING THAT. BUT IS IT IDEAL TO BE TRYING TO PILE ON EVENTS AND CELEBRATIONS DURING THIS FISCALLY DRAINING TIME WITH NO PLAN ON HOW OR WHERE THE FUNDS WILL COME FROM. WE HAVE ALL THE SPORTING EVENTS ALREADY ANNOUNCED, NOT TO MENTION ANOTHER ROYAL 44
VISIT FOR THE INDEPENDENCE CELEBRATION THAT WILL NO DOUBT ECLIPSE THE MORE THAN $600,000 ON THE DUKE AND DUCHESS OF CAMBRIDGE’S ROYAL VISIT IN MARCH. THE BAHAMIAN PEOPLE WILL ONCE AGIN HAVE TO FIT THE BILL FOR HIS EXTRAVAGANCE AND GRANDIOSE POSTERING. OF ALL THE THINGS OUTLINED IN THE GOVERNMENT’S BUDGET, THERE WAS NO MENTION OF HOW THE GOVERNMENT INTENDS TO PAY FOR THESE THINGS. WE HOPE THIS NEW ADMINISTRATION DOESN’T SEEK TO ADD ANOTHER BURDENSOME DEBT ON THE BACKS OF BAHAMIANS FOR ANOTHER BIG PARTY. THIS BUDGET WAS FILLED OF LOTS OF APPETISERS FOR BAHAMIANS BUT NOTHING TO SATISFY THEIR HUNGER. THEY WANT MORE. THEY DESERVE MORE FROM THIS NEW DAY ADMINISTRATION. 45
THIS WAY FORWARD BUDGET MISSES THE MARK AND FAILS TO PUSH FORTH VALUABLE OPPORTUNITIES LEFT BY THE FNM ADMINISTRATION. AS ALWAYS, THE OFFICIAL OPPOSITION IS HERE TO PROVIDE BIPARTISAN SUPPORT FOR THIS NEW DAY GOVERNMENT. I THANK THE PEOPLE OF THE BAHAMAS AND I THANK GOD FOR HIS MANY BLESSINGS OVER OUR COMMONWEALTH IN THESE TUMULTUOUS TIMES. I AM CONTINUALLY HONORED AND GRATEFUL FOR THIS RESPONSIBILITY TO BE A REPRESENTATIVE FOR THE PEOPLE OF CENTRAL GRAND BAHAMA AND WILL CONTINUE TO DO MY PART TO ADVANCE OUR COUNTRY FORWARD, UPWARD, ONWARD, TOGETHER! 46
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