The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Government has four to six months to "deliver on their promises before they start to lose credibility", a governance reform campaigner has warned.

Robert Myers, a principal with the Organisation for Responsible Governance (ORG), told Tribune Business that while the increased optimism following the May 10 general election continued many Bahamians wanted to 'touch and feel' improvements in their lives.

He urged the Minnis administration to follow through and execute on more of its promised anti-corruption legislation, together with implementation of Fiscal Responsibility legislation and so-called 'fiscal rules', plus improvements to the 'ease and cost of doing business'.

Suggesting that the upcoming Mid-Year Budget will be "very telling" in terms of how the Government intends to move forward, Mr Myers said many Bahamians were also watching to see if it will proceed with a fully-funded Freedom of Information Act to demonstrate its commitment to transparency and accountability.

"I think generally there's an optimism among the business community, and hope things will get going," he told Tribune Business. "The tourism season seems to be strong, although there's a lot more employment to be created.

"The US economic fundamentals are good, but fuel prices are likely to rise. That's a little bit concerning for us given our dependence on foreign fuel and the cost of power. Generally, though, the outlook looks fairly stable to me."

The IMF is projecting that the Bahamian economy will grow by 2.5 per cent this year, due to the short-term 'bump' from Baha Mar's full opening and creation of 5,000 jobs, but Mr Myers warned that the Minnis administration's so-called 'honeymoon period' may quickly end if impatient voters do not see it delivering more extensively on its promises soon.

"I think the Government probably has another four to six months in which to implement what they've promised before they start to lose credibility," he told Tribune Business. "People are reasonably happy with what's going on, but they've got to walk the walk. That's critical.

"The mid-year Budget is going to be very telling. We should see funding for things like the Freedom of Information Act. If that's not in there, they're not serious about pursuing it. It's something people are hell bent on seeing, as it's necessary to move to an updated and modern form of government, and shows we've turned the corner.

"It's more than information; people will recognise they're committed. People need to have confidence in the Government that it is going to do what they say. When that starts to happen, people will feel more comfortable in investing."

The Minnis administration has spent its first seven-plus months in office getting to grips with what it inherited from its predecessor. It has been able to blame much on the Christie administration, but many are likely to tire of this - if they have not already - and will want to see progress and results from the new administration.

The Government has already begun to move on its legislative agenda, having debated and passed the Commercial Enterprises Bill through Parliament as one of the first elements in its strategy to re-position the Bahamian economy for growth through liberalisation, deregulation and attracting new industries.

It has also introduced some of its governance/anti-corruption legislation, and passed and brought forward various Bills designed to ensure the Bahamas complies with the OECD's automatic tax information exchange and Base Erosion and Profit Shifting (BEPS) initiatives, plus remains off the European Union's (EU) 'blacklist'.

Mr Myers said Fiscal Responsibility legislation, independent prosecutors and changes to the anti-corruption legislation "so we're not going back to the Prime Minister and his ministers" should figure highly on the Government's agenda.

"We've got to move away from the fox guarding the hen house," he added, referring to how most Bahamian laws make the responsible minister all-powerful with wide-ranging discretionary powers.

"In most of these laws, this is what happens. This is not a form of governance we're going to prosper from as we move forward into a more modern form of government," Mr Myers told Tribune Business.

"Let's learn from the mistakes of the past. We don't want to move sideways. We need to move forward. The ease of doing business, we need to see real progress there, and the cost of business, we need to see real progress there. The eradication of exchange controls is critical, and there are other things the Government could do."

The ORG principal urged the Minnis administration "not to squander this wonderful opportunity" presented to it to enact meaningful, long-lasting reforms that could reposition the Bahamian economy and society for the better.

"If it doesn't happen in the next four to six months, people are going to feel 'it's the same old, same old'," Mr Myers said. "We've got this wonderful opportunity, and I think the Government are doing a good job. The question now is: Are they doing a great job?

"They've had enough time to get their act together. I know a lot of these are working tremendously hard, but there's a difference between working hard and being effective. They've got to be effective and get results.

"They inherited a mess, but it's important that support from the public is not squandered. Take advantage of it, make some changes and make it happen."