The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

ENVIRONMENT Minister Kenred Dorsett touted the merits of a compendium of petroleum bills that he said will protect the economic and environmental safety interests of Bahamians as the country looks ahead to likely oil exploration activities.

“The subject of oil exploration is not without controversy in this country,” he said in the House of Assembly yesterday.

“However, this administration sees it for what it is, an incredible opportunity, which has been taking place since 1947, which if successful would change the economy of the Bahamas for the better. This is just another attempt by this administration to leave no stone unturned in our search for ways and means to improve the economic state of this country.

“This administration committed to the holding of a referendum in relation to oil drilling should it be found in commercially viable quantities, as of now we fully intend to let the Bahamian people’s voices be heard on this matter but before such time we must finally answer the question of whether or not there is oil present in our waters at the amounts necessary to create a new industry for our country.

“We cannot continue to argue based on what ifs. The question of whether or not oil resides in the waters of the Bahamas in commercially viable quantities must be answered. We must know what resources we have and what we need to protect.”

In terms of economic impact, “the new fiscal regime for the petroleum industry,” he said, would result in the government getting a “minimum amount of 12.5 per cent” and a maximum of up to 75 per cent of profits.

“The government will be receiving royalties and a share of the profit from any petroleum and natural gas produced and as profits increase, the government’s share must also increase,” he said. “This new regime is one which is fair and is a process which should be considered in regards to other natural resources being harvested in the country.”

Among the compendium of bills is the Sovereign Wealth Fund Bill 2014.

“Sovereign wealth funds (are) where money is set aside for investment to benefit a country and its people,” Mr Dorsett said, adding that its purpose will be to “save and invest surplus funds derived from oil, gas minerals and other natural resources to provide a heritage for future generations of the citizens of the Bahamas, to support and increase savings for future generations, to enhance sustainable long term capital growth for The Bahamas and to support and promote any other strategic development objectives of The Bahamas.”

“This fund,” he said, “is for the holding of money derived not only from petroleum but from the development of the natural resources of the country. We are creating a mechanism to ensure that any excess profits gained from such ventures will benefit future generations of The Bahamas.”

The House of Assembly morning session was cut short because opposition members did not have an opportunity to see the amendments to the bills. The House of Assembly will meet again on May 26.