The Tribune

By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

PRIME Minister Dr Hubert Minnis said the government may have to defer a portion of salaries for Bahamasair employees as the COVID-19 crisis continues to hit government coffers.

“As government we have some very difficult decisions to make,” he said in the House of Assembly yesterday, during debate about extending the state of emergency until September 30.

“Around the world as airlines are parked, not flying, airlines are filing for bankruptcy. Bahamasair is supported by the government and the people of The Bahamas yet its staff are fully paid, yet (there is) no work. I spoke to my colleagues this morning in the Caribbean and at some point in time we will have to make a decision, and I’m not saying we’re doing that now, but at some point in time we have to make a decision (about) whether Bahamasair staff who are sitting there and the aircrafts who are sitting there, should we pay them a percentage of their pay, let’s say 70 percent and defer the other 30 until things have changed.

“Barbados was successful in issuing what they call compulsory bonds and keeping everyone employed. I don’t believe in laying off, but (Barbados) is reducing their salary by a higher percentage and that bond is paid back to them over an 18-month span but with the compulsory bond they are guaranteed their salary. At some point in time we will have to make that decision.

“Whether we follow what is happening around the world with mass layoffs which causes serious problems — so I have issues with that — as opposed to reducing individuals’ salary, deferring a portion of their salary, but they’re guaranteed it until our pandemic is resolved and our economy starts to grow. The nation must always come first. Politicians would be afraid to make such decisions because of possible outcomes but sometimes as politicians we must make difficult decisions in the interest of the nation or we all drown. At least give the nation an opportunity, the future generation an opportunity to swim and become best swimmers of the world.”

Dr Minnis said should the administration choose to defer the salary of Bahamasair staff, Cabinet ministers should all be prepared to similarly defer a part of their salary.

Bahamasair chairman Tommy Turnquest recently warned that the airline will close down without an increase in taxpayer subsidies after Hurricane Dorian and COVID-19 cut its revenue by $22m.