The Tribune

By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

SENATOR Michael Darville yesterday called the government’s bid to raise the value added tax (VAT) exemption ceiling for electricity bills from $200 to $300 a “hoodoo” political response to mounting public pressure.

The former Grand Bahama minister insisted the move would have zero impact as it would not outpace the estimated 60 to 70 percent increase in energy bills, and called for a nonpartisan approach to the critically high costs that affected not only businesses and poor people, but foreign direct investment and public infrastructure.

Dr Darville recounted how he once previously pleaded with executives at the Grand Bahama Power Company, operated by Emera, to keep the lights on at public institutions on the island.

“The realities and mathematics simply do not add up,” he said. “I believe this bill is a direct result of the pushback by the Bahamian people. I realise,” he continued, “I’ve been there before I’ve sat around the table and I know what pressure is coming from the general population. It forces politicians in a particular direction. It has forced politicians in a particular direction which led to this bill being expedited through these two houses.

“High cost of electricity affects business, it affects potential local and direct foreign direct investment. I know because when I sat in the chair…we had many opportunities for direct foreign investment that went across the wayside simply because of the high cost of electricity.

“I remember when we were government and the then power company the Grand Bahama Power Company, that is fully operated by Emera, decided to cut electricity off on all public institutions on the island of Grand Bahama. And I remember I went into the office begging them to please don’t turn off our essential services, which is school and hospitals.

“This was a great concern for the government then, because like this present government we had a shortage of capital to meet our commitments, and we had to find the wiggling room necessary to prioritize what was important in the country.”

He spoke during his contribution to Senate debate on the VAT amendment bill, which he characterised as a “failed manoeuvre to throw crumbs to help the poor.”

However, during his contribution Minister of State for Grand Bahama Kwasi Thompson said the increase will result in VAT exemption for some 90 percent of GBPC residential customers.

Mr Thompson noted the former administration had an opportunity to zero rate electricity for VAT purposes when the tax was first introduced, but didn’t.