Michael Halkitis, Minister of State in the Ministry of Finance at the PLP convention. Photos Shawn Hanna
By KHRISNA VIRGIL
Deputy Chief Reporter
kvirgil@tribunemedia.net
STATE Minister of Finance Michael Halkitis has maintained that when he made his controversial Progressive Liberal Party convention speech where he spoke of value added tax collection and spending, he was speaking within a “broad context” in support of good governance to show the Christie administration’s improved financial footing.
More than two weeks ago, Mr Halkitis delivered his fiery “Where the VAT money gone” address to scores of PLP supporters in response to critics who have questioned how the tax was spent.
While it was well received by PLPs gathered at the Melia Nassau Beach Hotel, it landed Mr Halkitis in the hot seat as calls were reignited for the government to fully give an account of the VAT revenue. Some critics also called Mr Halkitis disingenuous for suggesting that VAT had paid for initiatives that the government had borrowed money to carry out.
However, yesterday he moved to again explain the context of the convention speech, suggesting it was a response to those who have taken a “narrow view” of the matter.
He said: “It was a privilege of mine to speak at that convention and on the first night my aim was to give an account of this administration’s financial stewardship over its term in office taking into account the history and philosophy of the Progressive Liberal Party.
“That is our commitment to education, commitment to equality, the commitment to access to healthcare, our commitment to adequate social security, our commitment to broadening of the economic base (and) how did our reform of the revenue system (through) implementation of VAT being the main reform, how did that comport with our philosophy.”
He also said: “As a result of the reforms we have improved our financial position and we can meet the needs of governance in a better way. We can service our debt including debt payment and interest payment and we are in a better financial position to arrange financing for capital investments.
“I gave examples on all of these and spoke of how the government was able to undertake capital works to address long standing deficiencies.
“Because of our improved financial position we can provision for National Health Insurance.
“I say all of that because there has been some response to my address because I sought to deliver it in a particular way. But as I said before I stand by everything that I said. Because of our improved financial position we were able to go to a bank and arrange financing for Bahamasair without a government guarantee and when I say ‘that’s where the VAT money gone’ it is because of our improved position we can arrange the financing for the aircraft that were delivered ahead of schedule and advance monies to Bahamasair for that.
“The reaction to my speech was as if I was giving an exhaustive list of every single thing that the VAT money would have gone to and wanted to speak within a context of what we sought to do with the reform to put us in a better position for good governance and show some results of what we did.
“Some have taken the narrow view that you said you borrowed the money. Mr Speaker I was speaking within a broad context of supporting good governance,” Mr Halkitis added.
He said he was looking forward to this year’s mid-year budget debate, suggesting that further proof would be presented on VAT expenditure during this time.
Comments
ThisIsOurs 7 years, 9 months ago
"he was speaking within a “broad context” in support of good governance to show the Christie administration’s improved financial footing."
Improved financial position??? We just got downgraded to junk. I wonder if they sit around the cabinet table cackling at who made the most outrageous statement this week
SP 7 years, 9 months ago
"PLP All The Way" To Nowhere!
ThisIsOurs 7 years, 9 months ago
Correction "who GOT AWAY WITH the most outrageous statement"
Well_mudda_take_sic 7 years, 9 months ago
That Halkitis guy is nothing but a fooking dishonest SOB. The VAT regime was introduced for the purpose of reducing our national debt and decreasing our debt to GDP ratio. That was the solemn promise and undertaking made to the Bahamian people by Christie and Halkitis alike. Now this bone headed hot aired lying Halkitis, after using our VAT dollars to significantly grow the government and fund a multitude of wasteful projects, wants to make us believe that our national debt would be through the roof were it not for VAT. But that can only be true if Crooked Christie and his most dishonest gopher, Halkitis, have used our VAT dollars to very significantly increase the size of our costly non-productive inefficient corrupt government at just about all levels! This moron Halkitis should be taken to one of our national parks for stoning by the Bahamian people who have been robbed of the VAT dollars they paid over to the government.
Well_mudda_take_sic 7 years, 9 months ago
The Slimey Snake knows fullwell that Crooked Christie and Dishonest Halkitis had assured the Bahamian people that their VAT dollars paid to the government would go towards reducing the level of our national debt...not towards growing the size of the government or decreasing the rate of increase in our national debt. For him to make the following statement shows just how much of a crooked SOB the Slimey Snake now is:
"Where it came out and what they did with that money, that lies in the Government’s accounts. It’s there. It went there like all the Government’s monies, and the Government used that to finance the Government."
Of course we all know that a good chunk of our VAT dollars have gone and continue to go right into the bank accounts of the Slimey Snake's own businesses under the terms of outrageously generous contracts his good friend Crooked Christie has allowed him to negotiate with the corrupt PLP government. Yes indeed, Crooked Christie has his favourite cronies like the Slimey Snake sucking away constantly on the gravy train filled with our hard earned VAT dollars paid into the Public Treasury!
birdiestrachan 7 years, 9 months ago
Mr: Halkitis I understand perfectly what you have always said and continue to say. and there are many FNM's who also understand. But they are making this a political football , to tell lies to the Bahamian people in order to garner votes.
birdiestrachan 7 years, 9 months ago
Persons who call Mr: Wilson a snake. is it because they cannot stand the fact that a black man from over the hill has done well.? Remember both he and his wife came from humble beginnings , they work hard and educated themselves. so did Mr: Halkitis a brilliant young man from Cat Island brought up by a single parent . What is there not to celebrate.
Reality_Check 7 years, 9 months ago
So you believe one's humble beginnings justifies all of the crookedness one later does in life. Small wonder most of us usually do not give your comments posted to this website the time of day.
OMG 7 years, 9 months ago
Improved financial position, but hasn't the national deficit increased over and above VAT collections ? Surely it would be the time to hold back on new projects and pay the national debt down or maybe even put some aside for the inevitable next hurricane. So simple, cut the bloated civil service by natural wastage , use voluntary labour and resources for the Christmas decorations and cancel Carnival and these are just a few suggestions. How about administrators who drive top of the line Jeeps ,why not a cheaper car ?. All government cars and trucks to be only used for work not private use. The list could go on and on.
Honestman 7 years, 9 months ago
Halkitis has "sold his soul to the devil" along with all the other shameless PLP politicians. How can you respect someone who is part of this Mafia organisation and tries to defend the indefensible? His performance at the Convention was a disgrace as was his subsequent "economics for dummies" radio performance. Birdiebrain above thinks that the likes of Halkitis and Wilson are to be admired. That kind of warped mentality is part of the reason why the country is in the sh#t that it is in.
sheeprunner12 7 years, 9 months ago
It een long now ............. The residents better vote Halkitis out
TalRussell 7 years, 9 months ago
Comrades! This attempt by Minister Halkitis to defend his - "where in the hell did the $1.5 Billion in VAT moneys go" comments at the PLP's convention, is not only late in coming but will not be viewed as no soft landing for the mental gymnastics being played-out by the once seen to be the PLP's golden boy cabinet minister.
"Fool me once, shame on you; fool me twice, shame on me.
Da Minister: Would you like a can of ministerial explanations where ya VAT moneys gone? Da VATpayers: The last can of VAT explanations you gave us - had a slippery snake in it.
alfalfa 7 years, 9 months ago
He is the Minister for State in Finance, while Perry is the Minister of Finance. Halkitis is no fool but he is the puppet and Perry is pulling the strings. He has been set up to take the fall for what is obviously a gross cover up of financial imprudence.
Reality_Check 7 years, 9 months ago
Puppet Halkitis cannot even take a restroom break without first getting Crooked Christie's approval.
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