The Tribune

By CHESTER ROBARDS

Tribune Senior Reporter

crobards@tribunemedia.net

FORMER Prime Minister Hubert Ingraham said Monday that the Bahamas’ “cash flow” has not been as “tight” as it is today since the terrorist attacks on the World Trade Centre in 2001. He was quoting a senior treasury official.

Criticizing the Christie administration’s increased expenditure which could force an additional $150-$200 million in borrowing, Mr Ingraham said though the government already faces a $550 million fiscal deficit, it continues to spend despite the economy showing no real signs of growth.

“When the PLP came to office and declared there was a $500 million deficit, that was too high, I agreed it was too high,” said Mr. Ingraham.

“They were going to have a $550 million deficit for the next budget period. Clearly that was the wrong direction to go, clearly it should not have been increased expenditure, clearly they ought to have cut back, clearly they ought to have growth in the economy etcetera, etcetera.

“And now to hear them say that there is the possibility of another $150 million deficit is beyond my comprehension. So I await anxiously to hear what they have to say.”

Mr. Ingraham said the PLP government took the wrong approach when it began to once again beef up the public sector through new hires, putting added strain on the public purse.

“I can’t go to work and hire 30 new people at ZNS and can’t pay their wages at the end of the month,” he said.

“I can’t hire all of the retired customs officers and pay them and pay their pensions – retired police officers, immigration officers, bring back all manners of people, etcetera. I can’t do all those things and don’t have any increase in revenue without getting into trouble.

“The treasury is very tight. I was told by a senior officer in the treasury that the cash flow has not been this tight since 9-11-2001.”

Mr Ingraham contends that while Prime Minister Perry Christie continues to blame his government for the country’s deficit, after taking office in May of last year his government did nothing to control it and everything to exacerbate it.

“The reality is Mr. Christie is a man of many excuses and he will continue to make excuses,” said Mr. Ingraham.

“The reality is we cannot sustain increased borrowing.

“They have to have increased borrowing because they have increased expenditure. It’s they who are doing it, but they can blame the FNM government, they can blame them until eternity.”