The Tribune

A New Year’s message – Part II

By BRANVILLE McCARTNEY

WITH respect to our economy, in 2013, we continued to struggle, with thousands of people unemployed and many – especially in the tourism industry – working for just a few days of each week.

The financial industry has also been hit, with a considerable number of persons being laid off or given voluntary separation packages.

The 10,000 jobs promised by this administration was just one of many untruths.

It seems that more jobs were lost overall in 2013 than were created. Persons continued to lose their homes and the promise of mortgage relief was just that – a promise.

Many Bahamians are still finding it so very hard to put food on their tables, and businesses are finding it most difficult to just keep their doors open.

This administration has not ushered in any relief as promised.

As Bahamians, we are in the same position as we were, or arguably worse than we were, prior to the general elections of 2012.

The governing party seems to be very good at staging a campaign, with huge rallies, plying people with food and drink, and telling people what they believe they want to hear, just to get their votes, with no intention of meeting their promises.

Surely they can give a good talk, but, when it comes to getting the job done, they are a dismal failure. The victory rally is long over, but the PLP government has not yet gotten to work.

Regarding the intersection of crime and the economy, it is a known fact that criminal activity is an opponent to social stability and democracy, and therefore an enemy of economic stability, such that economic activity is impacted upon by criminal activity.

Regardless of how much we don’t like to hear or talk about it, foreign investment in any form is crucial to our economic and literal survival.

For those who believe that foreign investment comes only in the form of anchor resort projects and financial capital injections, we must be clear that even the daily, weekly, or monthly tourists are individual foreign investors!

And investors do not invest where their investments are unsafe or too risky.

To bolster our economy, we, in the DNA, would like to see the government focus on diversifying the national and local economies, inclusive of supporting and expanding agriculture and mariculture, with a commitment to reducing the Bahamas’ exorbitant $500 million food import bill. This includes diversification for our Family Islands which continue to be neglected every five years.

Further, the government ought to encourage the growth of the manufacturing industry, firstly in Grand Bahama, but also throughout the country.

Emphasis needs to be placed on creating real and sustainable opportunities for small businesses through new legislation and high-impact government incentive programmes.

The government must aggressively work towards reducing the cost of living, by investing in alternative energies (solar, water, wind, waste) and food security (for self-sustenance), reducing the costs of capital, and the relaxation of exchange controls.

For decades, governments of the Bahamas have continued to pursue direct investment into our country by way of hotel and resort developments.

Whereas the tourism industry must be maintained, it is well past time to look at where the foreign investments really need to be directed.

Many of our country’s social ills arise out of a majority of the country’s population being sandwiched together on one island, and can be addressed and resolved by a dissemination of the population to our constituent islands.

We need investors who will seek to share ownership in our nation’s infrastructural development, including the most basic utilities, road and harbour construction, airport development, and land and sea transportation… from the northernmost island to the southernmost island.

As a near to medium term goal, the government should be challenged to develop a Land Bureau to make crown land more readily available to Bahamians, for residential and commercial development. This idea extends to the family of islands.

In 2013, the issue of Value Added Tax (VAT) sparked heated debate, with the government’s position to introduce VAT in July 2014.

The DNA reiterates its position, with respect to the introduction of VAT at this time.

We have, over the last few months, proposed alternatives to VAT, and ways to increase revenue to ultimately reduce debt.

We strongly believe these methods have far more than a small chance of being successful, and we have outlined these suggestions in the DNA’s Three Point Plan to Prosperity.

The DNA believes:

• That we can achieve efficient government operation, through: the proper collection of existing taxes; constraining the growth of government spending and limiting government borrowing to a defined percentage of revenue; introducing a national procurement agency; privatising the Water & Sewerage Corporation, the Bahamas Electrical Corporation, and Bahamasair, to foster competitive growth; implementing a proper Freedom of Information Act; enforcing the Public Disclosures Act; introducing a Whistle Blowers Act; and eliminating cronyism projects and all their associated perks.

• That we have viable tax alternatives, including: the implementation of a goods and services tax ranging between 5 per cent and 7 per cent, and levied at the point of sale; reducing duties to a maximum of 10 per cent.

• That we can grow the economy, making the business community successful, by: reducing the cost of electricity (14c per KWH in power generation, and 3c per KWH in distribution); reducing the prime interest rate of banks by 50%; reducing the cost of capital through structured elimination of exchange controls; diversifying the Bahamian economy and incentivizing the small business sector; empowering working Bahamians through an increase in the minimum wage to $7 per hour; and making available ownership of crown land through a National Land Bureau.

My fellow Bahamians, in spite of our country’s many, many challenges, we sincerely believe that, through consultation with the public and private sectors, together with measured and decisive leadership, we can not only turn our economy around and reduce our national debt, but also create a dynamically diverse economy, embracing innovation and creativity, that will bring near-term and enduring prosperity to more Bahamians.

We came to you, when we began our journey to become your empowered government, to learn what was most important to you. You are already a part of our plan for our nation’s success and future security… the most important part of the plan, in fact.

We feel the same things you do. We are familiar with all the challenges you face, because we have faced them, too. And to meet those challenges head-on, we must come together and demand more, demand better for our Bahamas. We understand that changes are necessary to ensure that you may always be able to fully participate in the governance of your country.

And we maintain that your faith in our ability and commitment to guaranteeing your welfare, now and henceforth, requires your absolute faith in your government, with all the necessary checks and balances on all reforms, for accountability and transparency to the people we serve.

From a Code of Conduct Act for Public Service, to the limitation on length of service for the office of Prime Minister, to the Freedom of Information Act, all of which you have expressed a firm desire to create and implement… we are ready to do this for you.

Until such time as the tide is turned in favour of your new DNA government, we will continue to implore our current administration to provide you with some of the things you have pleaded for a better life in your own country.

After all, isn’t that what good governance is about – making life better for Bahamians?