The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

PRIME Minister Perry Christie has pledged a full review of the potential revenue associated with sustainable uses of the country’s natural resources, including sand, aragonite, aggregate and salt.

Mr Christie told parliamentarians that his administration must ensure the Bahamian people get fair compensation for the use and exploitation of natural resources.

While making the 2014/2015 Budget Communication on Wednesday, Mr Christie said the government planned to explore new sources of revenue among other things as it seeks to further stabilise the economy.

“Through this plan,” he said, “and in combination with our actions to strengthen economic growth, we are fundamentally and, in a balanced way, reforming the structure of our public finances in such a way that these are returned to a position of sustainable viability. And we are doing so responsibly and gradually, fully mindful of the need to sustain the forward momentum of our economy.

“In addition, my government will review potential revenue associated with the sustainable use of our natural resources, including sand, aragonite, aggregate and salt. The government must ensure that the people of the Bahamas get fair compensation for the use and exploitation of our natural resources.”

Earlier this month, Bahamas Public Services Union (BPSU) president John Pinder called on the government to cancel a current aragonite production agreement and renegotiate new terms.

Mr Pinder forecast that if the government sought a new agreement, the public treasury stood to gain an estimated $4.2 million in revenue.

Currently the Bahamas government receives $2 per tonne while aragonite miner – the Billingham Dredging Corporation – sells the mineral for $900 per tonne.

Mr Pinder criticised successive administrations for giving away the country’s resources for a pittance.

He said: “All of our Prime Ministers told us that the government could not afford decent salaries and better benefits because during negotiations we were told that the country had no money.

“They not only gave our resources away, they agreed to extend the arrangement to the year 2035. They have shown no intention of changing the arrangement so that our people can benefit.

“Can you imagine the shock that we went through when we were confronted with undeniable information that was presented to us on stationery that indicated that this contractual arrangement for the production of aragonite and the lease of Ocean Cay came from the very office of the Prime Minister and the Minister of Finance who wants to introduce VAT, because the country needs to introduce a new tax structure and improve revenues in the amount of $200 million per annum?”

Mr Pinder wants the new contract conditions to reflect an increased fee of $350 per tonne of aragonite.