The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

AFTER “inheriting” nearly $1bn in unpaid bills and unfunded obligations left behind by the previous Minnis administration, Prime Minister Philip “Brave” Davis declared yesterday that the government’s fiscal strategies are working as he pointed to a decline in government arrears.

In his mid-year budget communication, Mr Davis said bills owed by the government now total a “mere $90.7m”, adding that the “era of fiscal mismanagement has come to an end.”

He also noted earlier in his speech that the bills did not necessarily translate into new borrowing.

“Members will recall that in the mid-year review of the previous year, I revealed to the public that my administration inherited almost $1 billion in unpaid bills, claims and unfunded obligations,” the prime minister said.

“Not only did we have debt levels of near 100 percent of GDP, but we also had a drawer full with bills of almost $1 billion, waiting to be paid. Again, Madam Speaker, I am happy to report that our plans and strategies are working, and that the era of fiscal mismanagement has come to an end.

 “I am pleased to report that at the halfway point in the fiscal year, the government’s unpaid bills total a mere $90.7m or 2.7 percent of budgeted expenditure, compared to the 31.3 percent reported in the previous year.”

 These include $44.3m in unpaid bills and other obligations for state owned enterprises.

 He added: “Of which, $30.7m in unpaid bills were to the Water and Sewerage Corporation for water purchased; $13.8m in unpaid bills to the Ministry of Tourism, Investment, and Aviation, mainly for consultancy services, quality assurance, and global communications.”

 Other debts include $9.9m in unpaid bills for catastrophic healthcare services and the upkeep of community clinics under the Ministry of Health and Wellness and $8m in bills to the Department of Transformation and Digitisation in respect of various unfunded contractual obligations.

 The government also owes $5.9m to the Ministry of National Security for various security enhancement projects and $5.5m to Bahamas Agricultural and Industrial Corporation mainly for insurance services and utility services.

 With respect to the government’s performance thus far, Mr Davis’ officials were content, but not “complacent” with its achievement for the first six months of the fiscal year.

 He reminded that since coming into office, his administration reduced customs duties on various food items, increased the national minimum wage, and finalised a number of industrial agreements, among other things.

 Prime Minister Davis said that some of its initiatives to help Bahamians struggling from inflation, such as its price control expansion, received heavy pushback and “unwarranted criticism.”

 However, he said, the government has a role to play to protect consumers from market abuse, insisting that it will not hide from its responsibilities.

 “We acknowledge that in a perfect market, price controls are unnecessary. But The Bahamas is not a perfect market. Many of those who shout loudly about the virtues of the free market themselves participate in monopolies, duopolies, oligopolies, and other non-competitive practices.

 “In all areas, the government has a critical role to play in protecting consumers from market abuse. We will not flinch or shirk our responsibilities.”