The Tribune

By NATARIO McKENZIE

Tribune Business

Reporter

nmckenzie@tribunemedia.net

The Government appears to have presented a “prudent, sober” pre-election Budget, a former Chamber of Commerce president said yesterday, adding that it had given a “welcome kick-start” to fiscal consolidation by resisting the temptation to over-spend.

Addressing the Rotary Club of south-east Nassau, BAF Financial chief, Chester Cooper, said that given the Bahamas’ national debt, it was commendable that the Government had exercised fiscal restraint in the face of an election year.

Mr Cooper, who is thought to be seeking a nomination from the governing Progressive Liberal Party (PLP) to run as its Exuma candidate, said: “With the national debt above 76 per cent of GDP, it is commendable that the Government has presented a prudent, sober Budget that exercises fiscal restraint even in the face of an election year.

“The significant reduction of the deficit is a step in the right direction, and will go a long way in holding off rating agencies from a further downgrade of our economy to junk status; an outcome which will have far-reaching  and depressing implications for our economy.

“So, resisting the temptation to over-spend during a money-hungry election cycle will be a welcome kick-start to eventually putting a dent in the national debt itself.”     

Mr Cooper said the Bahamas must come to grips with the lessons learned from the Baha Mar saga  for the future good of the economy. “The Bahamas is not, and cannot be, a one-trick pony,” he added.

“Our national development plan must speak to the orderly and strategic development of our industries and our economy.

“We must undertake a thorough examination of the concessions regimes that we promote, ensuring that we are competitive in our pursuit of FDI, but also that we are not giving away the shop to the detriment of the future fiscal balance of our economy,” Mr Cooper continued.

“We must examine the economic model of the Bahamas, where we determine what is sustainable in our economy, and we guide our development in that direction rather than waiting to be pursued by an investor with a dream.”

Mr Cooper said this nation must invest in its product rather than “consistently subsidising the marketing budgets of private concerns”.

He added that expediting approvals and support for numerous ongoing investment projects, both local and foreign, can help to mitigate the impact of Baha Mar’s delayed opening.

Mr Cooper said Exuma can be “the new Bahamian Riviera”, with Children’s Bay Cay, Williams Island, Stocking Island, Leaf Cay, Norman’s Cay, Hog Cay, February Point and the new Hooper’s Bay Resort collectively representing nearly $1 billion in diverse resort investments.

“Just imagine how we can shift the narrative of the fortunes of these islands if we created an environment that fostered entrepreneurship, and created linkages to support these developments, creating wealth for Bahamians as well as being a net job creator for the Bahamas as Exuma is set to be,” he added.