By KHRISNA VIRGIL
Tribune Staff Reporter
kvirgil@tribunemedia.net
STATE Finance Minister Michael Halkitis insisted yesterday that it was impossible to cut back on nearly $288m in subventions the government expects to award various organisations and public corporations amid calls to curb public spending.
Noting a major allocation to the Public Hospital’s Authority (PHA) of $200m, Mr Halkitis acknowledged that the hefty subvention raises questions as to whether the government should reassess the funding.
In addition, he said major public corporations, including Bahamasair, Water and Sewerage, Nassau Flight Services and the Bahamas Development Bank account for $39m. Non-governmental and international organisations will receive $48,887,004.
The 2014/2015 budget allocates a total of $287,887,004 in government assistance.
“The subsidised health care costs borne by the Public Hospitals Authority,” Mr Halkitis said, “are another $200mapproximately, which must be singled out because to put a dent in this transfer raises questions about both the efficiency and quality of service delivery and the fees charged for the services.
“In looking at these various types of subventions and their budgetary costs, do we want to reassess their purpose and justification? Can we just cut them? Do we want to see higher prices, say for water? Is that what Members opposite really want?
“In some areas, we cannot simply cut indiscriminately given the archipelagic nature of our small country. The example of the PHA draws out the complex issue of the government’s role in providing affordable health care to the population, for which the solution is not as simple as merely increasing the fees charged.”
As a result, FNM East Grand Bahama MP Peter Turnquest urged the government to review the budget process saying a decision to privatise Bahamasair must be made. He said the struggling airline has proved to be burdensome to taxpayers. He further pinpointed the $1m allocation to Nassau Flight Services as there has been no subvention for that in previous budgets.
Mr Turnquest said: “When you subsidise Bahamasair, they have no incentive. But this is about the subsidy that the Bahamian people are called on to give year after year. The corporation must be privatised or made to carry its weight.
“We are continuing to put millions into Bahamasair, into a losing corporation and at some point we have to make a decision about it. It should be a part of the comprehensive restructuring of the budget process.
“We have a mandate and that is to get our fiscal house in order. We must look at every agency every department critically. The Nassau Flight Services, we should not be picking up another corporation.”
Comments
Well_mudda_take_sic 10 years, 6 months ago
Subvention payments to Bahamasair will be significantly reduced with Henry Woods out of the picture; his shenanigans are well known to have cost us a small fortune over the years.
ThisIsOurs 10 years, 6 months ago
FOOLISHNESS. the people who elected you REALLY WANT to see someone efficiently managing their money. If you are satisfied to give it all away, step aside. You had a year to look at how money was being used BEFORE you allocated anything else. I DO NOT accept your answer. who is going to be fired for the mismanagement at BOB? And not Mrs ?Cash, I thank her if she blew the whistle, for letting me know how my money was being stolen from NIB to prop up loan SCAMS at BOB. who is going to be fired from PHA for the millions STOLEN? Who's assets will be seized in an attempt to pay back the millions in deficit at both organizations?
ThisIsOurs 10 years, 6 months ago
Nassau Flight Services? What in god's name is this about? Aren't they a private company (I stand to be corrected)? Why are they getting a subsidy?
ThisIsOurs 10 years, 6 months ago
I am now corrected
Straight_Talk_Bahamas 10 years, 6 months ago
The Government continues to miss the point. Nobody is asking you to cut essential services, we're asking you to cut the inefficiancy, wastage and downright corruption that is a burden on the backs of The Bahamian people.
Put these agencies under a microscope, accounting for every penny and fire people when things are found to be out of order. The subventions will reduce naturally AND we might just get better service.
John 10 years, 6 months ago
What they are saying in plain English is that the politicians, over a number of years, built a Bahamas that Bahamians can no longer afford. SO our children and those for generations to come will be a slave to servicing this debt. Amen.
John 10 years, 6 months ago
THE PMH is overburdened because of our violent crime situation where people are being stabbed and shot almost daily. Then many insurance companies are finding the services at the other health care facility too expensive to afford. If you don't have insurance you have to come up with $22,000.00 cold cash to be admitted to this hospital and after 3 days you must find more cash. Health care on the whole is too expensive in this country and less than 10% of the citizenry can afford private hospitalization if thy don't have medical insurance.
TalRussell 10 years, 6 months ago
Why is Nassau Flight Services still a wholly owned government company. Why are taxpayers subsidizing them up teen millions of dollars when their own website says: "Nassau Flight Services has an Enterprising Management and Board. The current Board and Management are anxious to expand the business of Nassau Flight Services Limited (NFS) to eventually become a regional ground handler. While the company is Government owned, it has operated in the ten (10) years as if it were a NORMAL business".
TalRussell 10 years, 6 months ago
Comrade Minister in your heart do you really believe Bahamaland's taxpayers should be expected to provide "subsidized ground handling services at regional airports as proclaimed by the board of directors of BFS?" Why in the hell is Nassau Flight Services still a wholly owned government company? Why are taxpayers subsidizing them umpteen millions of dollars when their own website says: "Nassau Flight Services has an Enterprising Management and Board. The current Board and Management are anxious to expand the business of Nassau Flight Services Limited (NFS) to eventually become a regional ground handler. While the company is Government owned, it HAS operated in the ten (10) years AS IF it were a NORMAL business?"Really, just like any other privately operated company?Are we Bahamalanders really as stupid as this administration thinks?
ProfessorTinker 10 years, 6 months ago
If they take at Uncle Sam, he got out of the Business of owning much of anything a long time ago. Government can't effective run anything much less in many cases run the country. Bahamas air has so of the most laziest people in the airline industry. So much curry favor makes it impossible for the dammm airline to make any money. The damm pilot is holding the plane back waiting on his mistress.
This is a must but sadly speaking with privatization there will be massive job cuts but it is needed. If the PM need a flag carrier for his trips, then the government can buy a small plane for that purpose and get rid of Bahamas Air. Look at Trinidad and Jamaica. BWIA out of Trinidad was privatize because of money loss and corruption and Caribbean Airline was born and then Air Jamaica was in trouble and Caribbean Airlines bought Air Jamaica.
If Bahamian investors can't afford to buy it, then sell it to Caribbean Airlines. They will allow the country to Keep the name as Bahamas Air. Furthermore there is enough private companies that fly into the Bahamas already. If they don't sell it one thing they should look at is downsizing that massive route they got and stop lying empty.
proudloudandfnm 10 years, 6 months ago
Wait! Nassau Flight Services is a government corporation?!?!? Well now that's pure nonsense. Something that can easily be privatized. And I do mean easily. Das some pure crap.....
proudloudandfnm 10 years, 6 months ago
I can take over NFS today! I'll have it up and running by end of month. Put it out to bid. Grow our economy stupid....
asiseeit 10 years, 6 months ago
Mr. Government man, it is impossible for ME to cut back any more to pay YOU! GET IT ASSHOLE YOU HAVE BROKE ME! I am tired of taking cold showers, I cannot cut back on my grocery bill as i will starve, I have not been to a fast food outlet, bar, the mall, or any other entertainment venue in years. WHY? I CANNOT AFFORD TO DO THESE THINGS! Yet YOU Mr. Government Man want MORE!, Sorry I have no more to give you! So how about YOU CUT BACK AS I HAVE BEEN DOING FOR YEARS NOW!
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