The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Democratic National Alliance's (DNA) former leader yesterday said Moody's recent Bahamas assessment was "no real surprise", arguing: "There's nothing new except taxes."

Branville McCartney told Tribune Business that "I expected nothing different" after Moody's maintained the country's "Baa3" credit rating with a negative outlook - the lowest "investment grade" rating possible before "junk" status.

He argued that Moody's decision only confirmed a lack of economic stimulus and the absence of major foreign investment. "There's nothing new right now except taxes, and so the Moody's report is no real surprise," the former DNA leader said.

"Business persons are still facing a lot of red tape and bureaucracy; there's need for more economic activity. We seriously have to look at new industries. The issue of medical marijuana, we need to jump on that ASAP. We have to look at a national lottery also. Those two industries could be $500m each."

Speaking of his family's pharmacy business, Mr McCartney said commerce had declined noticeably in the wake of the 60 percent VAT increase despite a wide range of medicines being free from the levy.

"Since the VAT increase we have seen a reduction in business," he added. "It's still tough. VAT is now off prescription medication but people just don't have it. They're coming in and purchasing a a few days supply as opposed to a month's supply because they simply cannot afford it. They simply don't have it to spend."

Moody's last week said its assessment "reflects potential downside risks to the fiscal consolidation process posed by weaker-than-expected growth, exposure to climate-related shocks in the form of hurricanes, and implementation risks associated with measures to rein in expenditure growth and increase revenue intake".