The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Ministry of Finance official yesterday confirmed the government has allocated $48m towards various COVID-19 jobless benefit initiatives in the 2020-2021 budget.

Marlon Johnson, acting financial secretary, said a portion of this sum will finance a 13-week benefits extension for those unemployed persons who have “maxed out” their initial National Insurance Board (NIB) allocation. The funding for this will be coming from the government, though, with NIB just administering the payout.

“The Ministry of Finance can confirm that $48m has been allocated to finance an expansion of the government’s unemployment assistance programmes, administered by the National Insurance Board (NIB), for workers that fall under four categories,” Mr Johnson said.

“Self-employed tourism workers who remain unemployed and were receiving assistance prior to July 1; Hurricane Dorian survivors who remain unemployed and were receiving unemployment assistance prior to July 1; NIB contributors who are under 35 years-old, and who were unemployed during the COVID-19 shutdown but did not meet the contribution threshold to receive a benefit; and for individuals who have maxed out their 13-weeks of eligibility under the ordinary National Insurance unemployment benefit scheme.”

Mr Johnson added: “Today, the Ministry can announce that the first payments for NIB beneficiaries that are eligible for the 13-week extension are scheduled to be issued on July 17 under the new initiative.

“Eligible applicants will be required to declare their employment status using an online portal prior to receiving payment. The portal will be available in approximately two weeks.

“In keeping with the prime minister’s mandate, the Ministry of Finance has allocated resources for NIB to administer a new unemployment assistance programme on behalf of the government. Unemployment levels are not expected to stabilise for some time, and the various forms of assistance in the new budget will assist employers and employees during this time to crisis,”

Persons who have completed their initial 13-week NIB benefit will be eligible to receive $150 per week in government assistance for a further 13 weeks of unemployment up until March 23, 2021.

K Peter Turnquest, deputy prime minister, added: “All the tax concessions included in the 2020-2021 annual budget take effect today [yesterday], including the duty reductions on construction material and those put in place to stimulate the fishing and agricultural sectors.

“The expanded tax credit and tax deferral programme also takes effect, and will include all VAT registrants - not just those with an annual turnover of $3m or more. This will provide payroll support for hundreds more eligible businesses allowing them to keep more people employed.

“The start of the new budget cycle means additional funding is now available to invest in small businesses, to maintain employment levels, and to expand the social safety net for displaced workers and other vulnerable Bahamians.”