The Tribune

DESPITE the economic challenges of 2011, Prime Minister Hubert Ingraham indicated last night that the Bahamas' economy is expected to grow by 2.8 per cent for 2012 - up from the near two per cent growth experienced in the previous year. Addressing the nation for his new year's live radio and television broadcast, Mr Ingraham said the Bahamas is doing all it can in the face of the worst economic crisis in the lifetime of the country. He said: "Despite the severity of the global economic crisis on the Bahamas, we are still a most fortunate country. During my travels overseas to represent the Bahamas, I was struck by the number of leaders who informed me of the high number of civil servants laid off in their respective countries over the past four years. "I am very pleased to say that not a single civil servant in the Bahamas was laid off as a result of the global economic downturn." During this severe downturn, the Prime Minister reminded the public that many countries slashed social assistance and social protection programmes. However, in the Bahamas, he said, such programmes were increased, particularly for more vulnerable Bahamians. "And, we significantly strengthened social protections with the addition of two landmark benefits, an unemployment benefit and the national prescription drug benefit. "My second impression and indeed conviction, is that the Bahamas is on the right track. In saying this, I am not suggesting for a moment that all is clear. Nor am I suggesting that there are no more difficult days ahead. What I do believe, is that we are making significant and meaningful progress," he said. Looking forward to this upcoming year, Mr Ingraham said the recovery experienced in 2010 and 2011 continues to be propelled primarily by construction and tourism activity. "No responsible government could have followed the path of delay, indecision and half measures. We had to act decisively and comprehensively. Not only was a collapse prevented. We are now moving forward. "This intervention necessitated an increase in government borrowing and consequently government debt. However, government debt relative to the size of the economy remains well below the danger level and well below the level of our regional neighbours and most of the developed and developing world. "Nevertheless, we will, as soon as it is safe to do so, reduce the rate of growth in government debt and over the medium term return the debt ratio to a more desirable and sustainable level," Mr Ingraham said. The Prime Minister also touched on the recent default by Atlantis on its $2.5 billion loan. "In 2006 all of Kerzner International's properties on Paradise Island were used as collateral for the loan. Some of the proceeds from that loan were used for developments on Paradise Island; the remainder was used on other Kerzner International developments elsewhere around the world. "One of the seven lenders sought to take over the ownership of the Paradise Island properties with the backing of 4 of the other lenders. The other two lenders objected. The lenders are in discussion among themselves as to an agreed way forward. They fully understand and are of one accord that the continued successful operation of the Kerzner International properties on Paradise Island is in their mutual benefit and essential for them to realise repayment of their loan. "Atlantis is enjoying a very successful winter season. Hence, notwithstanding any conclusion which the lenders may arrive at, all are interested in ensuring that the properties continue to perform well. The lenders have agreed that Kerzner International will continue to manage the resort properties. The future of Atlantis is bright given its value as one of the leading resorts in our region. "The overriding responsibility for us all is the protection of Bahamian jobs and the long-term viability of Atlantis. I am assured that the jobs of Bahamians at Kerzner International are secure," he said. The Prime Minister also highlighted that the redevelopment of Cable Beach, the Baha Mar mega-resort are on target and gathering pace. As the construction of the core of this project advances during 2012, Mr Ingraham said that he expects new additional jobs to come on stream. To date, nearly 1,500 Bahamians have been engaged on the project and subcontracts valued at $84.2 million have been awarded to Bahamian contractors. Along with the Arawak Cay Port development, and the development of the Lynden Pindling International Airport, Mr Ingraham said that 380,000 new airline seats have been added from major tourism markets into Bahamian destinations giving us more non-stop connections to more destinations in the Bahamas than ever before. This includes new flights from destinations in North and Central America, and restored non-stop flights from Frankfurt, Germany, after an absence of more than 20 years, and to Grand Bahama from Toronto after more than a 30-year hiatus. The Government in 2011 also promoted the SelfStarters programme, and the 52-week National Job Readiness and Training Programme. Investments in heathcare and education were also seen for the fiscal year. "Over the past several years, and markedly during the past year, these investments have amounted to hundreds of millions of dollars spent to improve the quality of life of Bahamians. "These comprehensive investments in our Family Islands are being made in hospitals and clinics, schools and athletic facilities, roads in Acklins and North Andros, bridges in South Andros, airports in Abaco, seaports and docks in Long Island, North Eleuthera and Central Andros and Current Island and government administrative offices in Abaco and Grand Bahama among other facilities. "We are continuing to upgrade electricity and water supply, and helping to cause the greater reliability of telecommunications, cable television and internet services," he said.