The Tribune

By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

DNA Leader Branville McCartney yesterday railed against the government’s fiscal management in view of the country’s recent credit rating downgrade from Standard & Poor’s (S&P).

Mr McCartney said the downgrade from the international credit rating agency demonstrated that the Christie administration’s economic policies had failed, and forecast that a similar downgrade will follow from another global ratings agency, Moody’s.

“Since coming to office in 2012,” Mr McCartney said, “the PLP’s trend of reckless spending, over taxation and its dependence on anchor projects to stir economic activity has jeopardized the country’s fiscal position in both the long and short term.”

“Clearly the minister of finance and his junior minister are completely out of touch with the realities facing the average Bahamian. The Christie administration’s response to the downgrade is a scathing indictment of the political directorate who, rather than address the myriad of problems facing our economy, have chosen to participate in petty tit-for-tat arguments.”

He added: “What the country needs now is a new fiscal footpath; one paved with transparent and effective policies which will create employment and entrepreneurial opportunities for Bahamians at all socio-economic levels.”

S&P downgraded the Bahamas’ sovereign creditworthiness on Tuesday, warning of “depressed growth” due to a combination of the Baha Mar dispute and long-term structural weaknesses in the economy.

The rating agency warned that the Christie administration’s handling of the Baha Mar impasse would be a major factor in whether or not the country would be further downgraded, adding that the project’s reputation had been damaged by the dispute.

In a press statement yesterday, Mr McCartney revealed that his party is attempting to salvage the country’s international reputation, and has also started consulting with local stakeholders from the private and public sector.

“Rather than accept responsibility for its failure, however, this government has attempted to justify the bleak assessment and in a statement issued overnight, even dared to suggest that the country’s ‘real economy’ has seen improvement,” he said.

“Despite the prime minister’s assurance that the government’s long term fiscal strategy will in fact yield economic improvement, the Democratic National Alliance has no confidence that this PLP government will be able to save this sinking ship.”

Mr McCartney said the DNA’s plan – if elected – would be to introduce a Balanced Budget Act, reduce the prime rate to allow greater access to capital, and reduce taxes while creating an environment that encouraged middle class entrepreneurship. New industries will be created through the implementation of “green investments,” according to Mr McCartney, who explained that the initiative would balance the use of natural resources to diversify the economy and reduce dependence on foreign direct investment.

He also expressed a commitment to expanding investments in the “orange economy,” which encapsulates creative and cultural industries.

“A DNA government will work to reduce the tax burden on struggling Bahamian families,” he said, “breathing life back into the middle class while creating the kind of environment which will encourage the entrepreneurial spirit and empower Bahamians to become owners of their own economy.”

Mr McCartney added: “Business as usual will no longer work. The country’s fiscal position is a ship clearly run aground, but there is a better way.”