The Tribune

By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

FREE National Movement Deputy Leader Peter Turnquest yesterday hit back at Sir Franklyn Wilson for suggesting that the Official Opposition is rooting for a downgrade of the country’s credit rating, calling it “the most asinine statement somebody could make.”

The East Grand Bahama MP said he and the FNM are “hopeful” the Christie administration is “successful in its efforts to allay the concerns of the ratings agencies,” adding that it is not in anyone’s interest to see the country downgraded.

His comments came just days after Sir Franklyn urged Bahamians to cast aside political divisions and unite in trying to ward off any downgrade by Wall Street rating agency Moody’s, as he argued that opposition supporters were almost willing it to happen in the belief it would boost their party’s prospects in the upcoming general election.

Sir Franklyn added that “bad news for the country” should not be celebrated by any right-thinking Bahamians.

Sir Franklyn was referring to Moody’s previous announcement that it placed the country “on review” for a potential downgrade, due to both The Bahamas’ unexpected economic contraction and further deterioration in the government’s fiscal position.

“That’s the most asinine statement somebody could make,” Mr Turnquest said in response to Sir Franklyn. “Because again, if all of us are blind, it doesn’t work to the benefit of anybody, because all we’re going to do is go around in circles. We all are invested here. We all have our life savings, our hopes and dreams tied to the success of The Bahamas. And so why would we be rooting for a negative outcome?

“The truth of the matter is we have been saying to the government for the last four years, that the projections that are being put forth are not realistic. We have been right in the last four years in that regard. We have also been encouraging the government, urging them to reign in expenditure, to reign in these discretionary projects that have not been producing a return. But they have insisted that they want to go ahead. Like bulls, they just want to go ahead with blinders on as if they have the answer. And reality is proving that they did not have the answers and they have been wrong.”

Mr Turnquest also said the FNM shares in the government’s desire to avoid a potential downgrade. However, he said the FNM takes umbrage that the ratings agency did not meet with the Official Opposition, considering that the agency met with various other private sector organisations last week.

“Be that as it may, having not had the opportunity to give any input, we have to be hopeful that the government is successful in its efforts to allay the concerns of the ratings agencies,” Mr Turnquest said. “Based on what we know, there has been nothing that we can see that is going to make a dramatic impact in the short term.

“So again we don’t know what plans have been put forth that is going to cause this turnaround, certainly in the short term, but we are definitely hopeful because we do recognise that if this boat sinks we all drown together, regardless of whether you’re PLP, FNM, DNA or whatever. And so it is not in anyone’s interest to see the country downgraded.”

On Monday, State Minister for Finance Michael Halkitis said the Christie administration is “hopeful” the country’s credit rating will not be downgraded after having a series of “constructive” meetings with Moody’s last week.

Mr Halkitis said representatives from Moody’s met with both government and private sector groups over a two-day period and now the Christie administration has to “wait and see” what the agency’s review will be at the end of August.

Moody’s has warned that any potential downgrade could be “by one notch or more.” The country currently has a ‘Baa2’ rating, two notches away from being cut to so-called “junk” status--a position where it will lose its existing investment grade status.