PM on island tour to explain need for VAT

Prime Minister Dr Hubert Minnis.

As of Tuesday, June 26, 2018

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

DAYS before value added tax is to increase to 12 percent, Prime Minister Dr Hubert Minnis spent much of yesterday in Andros explaining his administration’s 2018-2019 budget, which has received intense public backlash.

Speaking to constituents gathered at a town hall meeting in Kemp’s Bay, South Andros – one of several held on the island – the prime minister painted a hypothetical picture of struggle and strain for Bahamians under the leadership of an administration that would have to bow to the demands of an international body if the government opted not to raise VAT.

He also reverted to the narrative that the Progressive Liberal Party was to be blamed for this decision, telling Androsians under the former government the pay roll for civil servants increased by $250 million. This among other fiscal missteps by the Christie administration, he said, placed the government in a situation where if it did not raise the VAT rate the government would have to borrow $661 million for the country’s survival.

“What also happened during the past five years, the payroll for the civil servants went up, increased $250 million,” Dr Minnis said during his first town hall meeting yesterday at the Marion Forbes Centre in Kemp’s Bay. He also spoke to residents in Mangrove Cay at the Courthouse, those in Love Hill at the Central Andros High School and other constituents in Nicolls Town at the Hartley Christie High School.

It is unclear how the prime minister derived the wage bill increase. Last September, Brensil Rolle, minister of state for the Public Service and National Insurance, said between December 2016 and May 2017, the public purse ballooned by $16,532,738 because of the Christie administration’s hiring of new public service workers during that period. In June, he told Parliament the cost to Bahamians of such increases was $10,149,738.

“Our debt went up during the past five years by $2.5bn or at least $500m per year,” Dr Minnis continued.

“In spite of us paying VAT, which generated and gave the government $1.5bn, we gave them $1.5bn.”

He also said: “We had several choices. We have a VAT 7.5, that’s generating a certain amount of money. We could look at that and decide all right we do nothing leave it at 7.5 and borrow an additional $661 million to move the country forward so that we can survive.

“But if we did nothing and borrowed the $661million, we would have been further downgraded and our interest rates would have increased even further. So we find ourselves in a deeper hole and then as the interest rate continued to rise and you can’t pay it we must seek help from outside.

“What would happen?” Dr Minnis asked.

“We had to make a determination whether we try to control our future destiny, whether we control and make decisions for ourselves and try to pay our bills and move forward or allow a foreign international financial agency to loan us the money and they would decide how many of you in the civil service we must lay off. We will have no say.

“They will tell us to lay off 2,000, to lay off 3,000. They would tell us how much to decrease your paycheque. We would have no say. A foreign entity will determine that for us.

“They would also determine for us what programmes we must cut. They can determine that we must cut the support that we give to Bahamasair. They can determine the support that we give to BPL and therefore your light bill will rise. Your water would rise. Your transportation between here and other islands increase. Your transportation to Florida increase, you cannot afford to travel to Florida.

“So the decision was, do you allow an international monetary agency to take over and dictate to you? As Bahamians we own our own land. Let us decide what we want to do. Not you.

“So those were decisions that had to be made. We could have done nothing and that’s what would have happened. You see exactly what is happening in Barbados.”

He insisted that in making the tough decisions contained in the new budget, his job was to protect Bahamians.

sheeprunner12 5 years, 10 months ago

Minnis trying to bribe Androsians to accept 12%VAT with Crown Land ....... what will he bribe Long Island (or any Southern island) with???? .............. How about some creative investment opportunities to take advantage of our natural resources and strategic location on cruise/cargo routes?????? ............ Or maybe the fact that Minnis might oversee the Southern Bahamas final depopulation should be enough motivation to do something to inject some investment opportunities??????????

TalRussell 5 years, 10 months ago

This is an insult our comrade Out Islanders for PM and KP- never tire telling 12% VAT tale - never to be believed by the 91,409 voting-red shirts 10th May 2017. The only plot Out Islanders understand is that the Dollar Bill in their pockets come July 1, 2018 VAT Intro Day - will be devalued to but spending value 88 Cents. Out Islanders might want greet the PM from docks whilst lifting up signs that reads, "Sorry, Your 12% VAT Is NO Welcomed Visitor set foots on this Island's dock"..... How dare you offer pay us Out Islanders a consultation visit - only "AFTER" you and your MP's did pass the 12% VAT Bill in the House and Senate. PM and KP, this is not transparency OutIslanderPeoplePublic consultation.... Don't bother landing we docks.

DDK 5 years, 10 months ago

P.M. is a day (or two) late and a dollar (or two) short but he's getting a good start on spending the new VAT money!!

bogart 5 years, 10 months ago

.....Roc wid Doc....if yinna hav to ask can very well 'bribe' Long Island wid creating surveillance and naval bases to seek out and appprehend illegal migrant boats as they must pass Long Island ...employing well trained seamen... These well trained Long Island seamen can also be used to track and apprehend the illegal fishing boats that decimate fishing grounds.

TalRussell 5 years, 10 months ago

Getting there Ma Comrade.

sheeprunner12 5 years, 10 months ago

But Long Islanders are competing with the Defense Force who tip off the illegals and Dominicans when we report them ........... smh

TalRussell 5 years, 10 months ago

Ma Comrade Bogart, but which aggressively expanding its Naval operations foreigner super power are the Imperial red shirts cabinet been talking with as occupants new Naval Bases and installations... including potentially a massive new Naval Port foreigner War Ships... maybe Freeport with all its at the ready man-made deep water canals?
There should be little doubt that Freeport's Port Company will fall under new Ownership within the coming 24 to 36 months period. The only question is to whom, not if it will remain under foreigners?

John 5 years, 10 months ago

Hope he tells them the best way to avoid VAT is to go back to your own fishing and farming and share within the communities. Self dependence.

joeblow 5 years, 10 months ago

If they had thoughtfully talked with the people first, this apology tour would not have been necessary! Act first think later is not a good model in governance!

geostorm 5 years, 10 months ago

You are correct, its good to consult with the people before implementing changes, however, let's be realistic.....do you think the average Bahamian would accept the 12 % increase? Everyone crying so I don't blame Doc. Just do what you need to do. The people will cry no matter if you consult with them or not. Personally, I don't want no international body telling us how to spend our money. Just look at Barbados, that is an embarrassment! Carry on Doc, and if the people never vote you in again, you can sleep with a clear conscience that you did not put our beloved Bahamas further in the dark hole. The buck stops with your administration. Carry on sir! You have my support!!

joeblow 5 years, 10 months ago

IF the gov't proved that the VAT money collected on their watch has been spent on lowering the national debt and IF they stated that the VAT increase was to continue to pay down the debt, then I would not care if they raised it to 15%-20%. The problem is they haven't proven that they can be trusted with our money. That is the real reason people are ornery with the VAT increase.! In truth we don't know how the money will be spent.

TheMadHatter 5 years, 10 months ago

Dear Bahamians. We were only gonna do 10%, but da Haitian pastors tell us we must remove VAT from dey people food, so we add a nexx 2% to yinnah to make up the slack.

Good luck, and try turn in ya passport to da police station - cause it ain't good fa nuttin.

TalRussell 5 years, 10 months ago

http://tribune242.com/users/photos/20...">

http://thetribune.media.clients.ellin..." alt="None">

by TalRussell

birdiestrachan 5 years, 10 months ago

This is doc talking :"They will determiner the support we give to BPL Bahamas Air your power airline tickets and water cost will rise" It is doc and the FNM Government who has risen the

cost of living for the poor and middle class. The price of food will rise the cost of gas will rise the cable, the phone everything will rise. how dumb it is to say and act as if only items controlled by government will rise. the cost of a car, land and all services will rise.

doc is a disaster . But the Bahamian people picked him. A mistake indeed . now they will pay for their mistake.

sheeprunner12 5 years, 10 months ago

I hope yall see where China is taking back ALL of their assets and forcing Third World countries to give up their land when these poor countries cannot pay their loans back ........ Sri Lanka is on the chopping block now .............. the Caribbean and Africa are next .............. The Bahamas has to stop living "hand to mouth" and surviving by borrowing money from these Big Country predators .......... That is Minnis' message to Bahamians (and we better heed it now).

sheeprunner12 5 years, 10 months ago

Do not forget ......... THE CHINESE OWNS FREEPORT HARBOUR NOW

bogart 5 years, 10 months ago

As the CEO in charge of erryting....but does not specifically have the Finance portfolio...Roc wid Doc ...has proven in the past dat as driver of da bus...he can drive an turn..missing potholes...gettin the passengers safely .....

Damifiknow 5 years, 10 months ago

The doc know if a cat smell bad,don’t know anything about business

Alex_Charles 5 years, 10 months ago

Hard to sell a tax increase on the family islands where life is often times 3 times as expensive as Nassau. GTFOHWTBS.

bogart 5 years, 10 months ago

EXCELLENT DECISION fer Roc wid Doc to go to the people on the Family islands ...and explain in person the Budget...likely da FIRST EVER SUCH NATIONAL BUDGET EDUCATIONAL DISCUSSIONS by any sitting PRIME MINISTER to do so in the history of the Bahamas.....

sheeprunner12 5 years, 10 months ago

What good is a PR stunt ....... when you already hide and VOTE behind Cabinet manual procedure???? ......... Out Island people smarter than that, bulla.

jackbnimble 5 years, 10 months ago

Isn't this like putting the cart before the horse? Shouldn't it have been explained BEFORE it was implemented?

Your can't make this stuff up.

bogart 5 years, 10 months ago

Family Island residents mostly look at the glass as half full, being a hard working, God fearing, innovative people done knowing adversity an making many sacrifices. They can take a discarded car tire and make a pair of slippers that can outlast the best made shoes....they can start wid chivken and get continuous suply of eggs.....make fish trap without wire....preserve conch an fish without fridge....bake better bread outside oven..cook healthier...better food....find medecine without doctor and live longer than city dwellers. It is good fer Prime Minister Roc wid Doc to go meet dem and talk an listen to dem about government matters likely first time ever for any Prime Minister in Bahamian history to do so.

Sign in to comment

Or login with:

OpenID

The Tribune