The Tribune

By RICARDO WELLS

Tribune Staff Reporter

rwells@tribunemedia.net

EXUMA & Ragged Island MP Chester Cooper yesterday dismissed the government’s mid-year budget communication as nothing more than “voodoo economics” devoid of plans and policies to improve the country’s financial outlook.

Mr Cooper, leading the Official Opposition’s response to the communication yesterday, accused the Minnis administration of “prettying up the books” as the country falls further into economic chaos.

Chief among Mr Cooper’s concerns was the government’s intention to borrow roughly $100m to be used as an investment in Bahamas Resolve. This comes after the government moved a $90m resolution for borrowing earlier this month, however officials have said the latter does not represent new borrowing.

Mr Cooper went on to question how the government could juxtapose its rate of borrowing with the fact that government expenditure has climbed to $1.3bn.

He also highlighted that public service salaries are pegged at $75m; $15m more than last year despite more than 2,500 layoffs in the sector.

“It was all about prettying up the books and spin without giving us the underlying realities on the ground,” Mr Cooper told reporters during a press conference in the Minority Room at the House of Assembly yesterday.

“While (Finance Minister K Peter Turnquest) may boast of improving figures, which we question, we say at what cost? The cost has been unemployment, bad roads and deteriorating infrastructure and no hospital beds,” he added.

“The PLP cannot endorse it and the people of the country deserve better from this ‘people’s time’ government. This government has no vision, no plan and no strategy for managing and growing the economy. We heard nothing new. We heard nothing that inspires confidence.

“Without fail, the minister of finance presents figures distorted by caveats and double speak to try to knit together something coherent that tries to make the government look good.

“However, we all see it for what it is – more voodoo economics from a government that promises much but delivers little. The lack of economic growth is the fundamental issue facing our economy.”

Mr Cooper suggested the government’s attempt to separate expenditure for debt reduction continues to be disingenuous, arguing that the Bahamians economy operates on a cash basis in which all expenditure is viewed on the same plane.

Mr Cooper said much of the debt reduction touted by the government yesterday came as a result of the current administration’s attempt to restructure debt and not resolve it altogether.

The Exuma & Ragged Island MP insisted that this strategy would only extend the burden on the Public Treasury.

He maintained that revenue collection should be up across the country with very little occurring over the last year to offset the process.

Moreover, he urged Bahamians to question the government’s boast of slashing capital expenditure by some 50 per cent.

Mr Cooper said: “But at what cost? Look around us. We can see the price we are paying. The busted roads with potholes, the dilapidated schools, the crumbling infrastructure, a hospital devoid of beds, the growing health crisis, crime continues unabated.

“Having slashed capital expenditure and having slashed 2,500 jobs from the public service, how is it that the Minnis administration does not have either revenue nor expenditure on target?

“The minister failed to explain how we are paying for infrastructure upkeep and how we will keep entitlement programmes funded without driving up the debt.”

Regarding economic growth, Mr Cooper accused the Minnis administration of repackaging projects initially presented by the former Christie administration - particularly in Grand Bahama.

Addressing New Providence, Mr Cooper added: “For the growth he claims experienced in 2017, as he indicated, we can thank Baha Mar for that. Apparently, they’re now fully on board.

“We have yet to see any details on the government’s proposal to remove VAT on bread basket items, remove business licence and other taxes in the inner-city communities and electricity and healthcare as was promised for all Bahamians.

“The minister did not mention these today.”

The government has promised that some of these initiatives will be addressed in the 2018-2019 budget communication.

“Only less than a month ago, the minister of finance said VAT revenues were down due to a sluggish economy,” Mr Cooper added. “Today he says VAT revenues are up and acts as if the economy is booming, yet in the same breath speaks to the climbing unemployment rate.

“As usual, there are far too many inconsistencies from the minister of finance. We will therefore await the competent reports Central Bank on these matters.”

The PLP expects to raise all of its concerns when Parliament resumes next Thursday.