The Tribune

By SANCHESKA BROWN

Tribune Staff Reporter

sbrown@tribunemedia.net

DNA Leader Branville McCartney said yesterday that while that 2015/2016 budget contained “some glimmers of hope” it was mostly filled “with few details and empty gestures as part of a bid to distract the public” the government’s “poor record on issues of national importance”.

In a press release, Mr McCartney said Prime Minister Perry Christie boasted about the money collected from value added tax (VAT) but failed to mention where and how the money will be spent. He also criticised Mr Christie for failing to use the opportunity to update the public on Baha Mar’s progress.

“The economic success story as told by the prime minister also conveniently ignores what has become of the pink elephant in the room: Baha Mar. For months, the multi-million dollar property has figured prominently into the PLP’s growth plans for the economy, most unfortunately after several delays and seemingly unending negotiations between the developer and the lead contractor, the resort remains closed; a reality which will likely force a downward revision of the country’s growth prospects,” Mr McCartney said.

“Those growth prospects as outlined by the prime minister also differ significantly from the predictions made by the Central Bank which predicted more moderate growth in the short term. Among other key omissions, plans for the redevelopment of the Bahamas Development Bank and a report from Resolve regarding its acquisition of that $100m worth of bad debt from the Bank of the Bahamas.

“More importantly though, the government’s fiscal budget further failed to take advantage of some of the immediate avenues available to an administration serious about improving the overall quality of life for Bahamians, among them: a reduction in the prime rate from the Central Bank which would immediately impact the lives of scores of middle class homeowners.”

Mr McCartney also said despite the government’s push to introduce the University of the Bahamas, the government’s budgetary plans for education “fall short of the needs of the country.”

“Improvements to the country’s education system must occur long before students reach college. In that regard, the government has again dropped the ball. Education reform must begin within the kindergarten system working its way up to high school in an effort to equip children with the necessary tools to enter the University of The Bahamas and leave with the skill sets needed to be productive citizens in the economy and society at large,” the statement said.

As he made his 2015/2016 Budget Communication last Wednesday, Mr Christie boasted of his administration’s fiscal achievements during the last financial year as he expressed optimism in the continued growth of the economy going into the 2015/2016 budget cycle.

As a result of an economy that officials said performed well above projections, the Christie administration is set to borrow $182m in the new fiscal year. Mr Christie said through his administration’s fiscal work the GFS deficit is now at its lowest in seven years.

Mr Christie also announced a 65 per cent maximum duty rate on vehicles down from the existing tax of 85 per cent.

In addition, the used car industry is set to experience a clamp down with the government’s decision to ban the importation of wrecked vehicles and cars more than ten years old, Mr Christie said.

However, Mr McCartney said, this is a bad move for used car dealers and people who cannot afford newer vehicles.

“This policy change will immediately decrease the level of business for those persons while further disfranchising middle and lower income Bahamian families who may be unable to qualify for financing from local lending institutions to purchase a vehicle. Coupled with a lack of effective public transportation, and no mention of a strategic plan to address the issues which currently plague the public transportation system, the government has dealt a serious blow to Bahamians who were once able to purchase inexpensive vehicles to get from point A to point B,” he said.