The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Democratic National Alliance’s (DNA) leader yesterday warned that the next government faces “a daunting task” to arrest the Bahamas’ fiscal decline, suggesting it start with reforming the Finance Ministry and associated agencies.

Branville McCartney told Tribune Business that it “cannot be business as usual” for both the personnel and systems currently in place at the Ministry of Finance, Public Treasury, Department of Inland Revenue and other revenue-collecting agencies.

Implying that the Bahamas was doing the same thing over and over again, yet expecting different results, Mr McCartney said there was little change at these Ministries and departments despite the frequent changes in administrations.

Disclosing that he was “very afraid” about the potential devaluation of the Bahamian dollar if present fiscal trends continued, the DNA leader said this nation needed to look for help outside the Government if it was to change course.

Reiterating calls for the “best and brightest minds” to become involved, Mr McCartney said the next administration should seek out private sector expertise and bid to change the culture within the Ministries and departments responsible for its fiscal condition.

He added that the numerous high net worth individuals living in the Bahamas as permanent residents provided a ready source of advice and expertise upon which the Government could draw.

Speaking after Tribune Business last week revealed that the International Monetary Fund (IMF) was predicting the 2015-2016 fiscal deficit would be double the Government’s projections, coming in at around $300 million, Mr McCartney said the next government - whoever it was - faced a massive task to stop the continued fiscal bleeding.

“It is going to be a very daunting task for the next administration in correcting the public finances,” he told Tribune Business.

“We cannot have business as usual with regard to the persons and way we deal with our finances in this country. We may change governments, but the systems and most of the personnel are still there in terms of the Ministry of Finance, Inland Revenue and the way things are done.

“The same people are still there, making the same decisions and causing it to be the way it is now. We cannot continue to do the same old, same old. We are going to have to make sure we get the best minds, the best persons to deal with our finances.’

Asked by Tribune Business whether the next government needed to inject a greater private sector-type culture into its revenue agencies, the newly-appointed Senate Opposition leader said: “Absolutely. We have to .

“We cannot keep it the same way. These are the same people, whether it is the FNM or PLP in power, with the same systems that are not working.

“We have to change that, and put persons in there with the know-how to make the finances work in our country, putting checks and balances in place, making sure taxes are collected, ensuring money is managed properly and that there’s no wastage. We keep the same people, same kind of systems in place, it’s not going to work.”

The Bahamas’ national debt is continuing to increase towards the $7 billion mark, albeit at a slower pace following Value-Added Tax’s (VAT) implementation. The new tax’s arrival has also helped to reduce the Government’s annual deficits, but by nowhere near as much as projected, indicating that VAT is no fiscal cure-all.

Mr McCartney said further reforms were required, and needed to be accompanied by greater fiscal transparency and accountability. This, he added, demanded both Fiscal Responsibility legislation and a Freedom of Information Act.

“We need to look at anti-corruption legislation where persons who think they can significantly benefit from corruption are penalised,” Mr McCartney told Tribune Business.

With Hurricane Matthew’s damages, and $150 million in emergency government borrowing, likely to ‘blow a hole’ in the projected $100 million deficit for 2016-2017, the DNA leader said the Bahamas needed to harness all available expertise to put its national finances back on track.

He suggested such help was already present among the Bahamas’ expatriate and permanent resident community, many of whom had amassed significant wealth for themselves and their families.

“Are these not the kind of people we need to be talking to and getting advice from” asked Mr McCartney, “as to how to manage the finances of our country?

“We need that. Let’s not fool ourselves. We need to get the best persons, the best minds, and go across party lines - whether they are PLP, FNM, DNA or don’t vote but have the expertise and live here as permanent residents.

“We need to talk and do what’s right to fix that. I’m meeting someone tonight who, he and his group, know how to fix finances.”

The Opposition Senate leader added that fixing the Government’s finances and the Bahamian economy would be among the next administration’s top priorities after the 2017 general election, whoever it was.

“I’m afraid that if we continue on the course we’re on now, we will be talking about the devaluation of the Bahamian dollar,” Mr McCartney told Tribune Business.

“I’m afraid, putting it as simply as this, that all those Bahamians looking to go to Miami, that will soon be a dream, because of the dollar’s devaluation. If we continue on this trend, put it like this; you and I will be having this conversation.”

He added: “The Government has not lived up to any of its forecasts for the last four-and-a-half years, and that certainly tells us they have not been responsible in their fiscal duties. They are spending uncontrollably.

“We need to be prudent and responsible with the people’s money, collect outstanding taxes, ensure proper management of our monies so that we eliminate waste and corruption, and diversify our economy.

“We must make sure we use the best and brightest minds, and cross the political divide to deal with the country’s finances.”