The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Government and National Insurance Board (NIB) have to-date collectively spent almost $150m on supporting jobless Bahamians through COVID-19, a Cabinet minister said yesterday.

Brensil Rolle, the public service minister who has responsibility for NIB, hinted strongly that the Government would further extend the unemployment benefit ahead of yesterday's Cabinet meeting (see other article on Page 1B).

Speaking outside the Cabinet Office, he said: “The Government has always been there for the people, and so whatever decision is taken on the extension will be a collective decision by the Government. There are thousands of Bahamians out of work, but the Government has spent in its own assistance and benefit programme nearly $50m it has given to NIB.

"That is separate and apart from the other programmes - food programme and other programmes - that the Government has provided in support of the people at this time. Again, we are mindful about what the situation is. We’re concerned about the people of The Bahamas and we’re taking steps to ensure we provide income support as well as food and necessary supplies for the Bahamian people.”

Mr Rolle said NIB and the Government had never before experienced the demand for welfare support created by the COVID-19 pandemic, and the associated economic lockdowns and restrictions. He added, though, that many Bahamians had failed to collect the unemployment benefits due to them.

"There are many, many cheques that are unclaimed for various reasons," the minister said. "We have been encouraging, and we have been calling, individuals to say to them your cheque is ready. Some people perhaps got frustrated and just don’t want to come out in this environment in this time to pick up a cheque, but we know we have given a service to thousands of Bahamians.

"The Government has spent nearly $50m on this programme, NIB is close to $100m in its programme. So we have never walked this road before and we are walking it now.”

Should the Government elect to continue with its 13-week unemployment benefit extension, Mr Rolle said funding it would require the Government to divert monies from other initiatives. "For example, in the ministry of public service there are some programmes we had put on, but because of COVID we had to recalibrate and address what is before us today," he added.

Mr Rolle said previous complaints about delays and problems in receiving unemployment benefits a third-party provided contracted by NIB, Island Pay, had been resolved. He said: “You can see it for yourself. You can go to the Sports Centre [stadium]; you could see the lines if they exist.

"I can bet you $100 to $1 that if you go there at 11am you won’t find five persons on the line. You would find more persons on the bank line than you would find at NIB at the Sports Centre, and we are serving thousands of individuals.”

He said difficulties were caused by the struggle of some to adjust to electronic payments. “It was the adjustment to an individual getting a cheque as opposed to getting an app, downloading the app to a phone and then using a kiosk" Mr Rolle added.

"That was the initial problem, but I say to members of the media, there was only one day this year that I am aware of that there was an extensive line, and that line was generated because a number of names were published in the papers of individuals who had already received their cheques. But I say to you, if you don’t believe me, go down to the Sports Centre any day and you will find lines that are much, much shorter than the bank lines.”

K Peter Turnquest, deputy prime minister, indicated at the weekend that the Government's COVID-19 support initiatives will likely extend beyond their end-September expiry given the delayed re-openings of many major hotels.

Acknowledging that that many Bahamians and their families will need such assistance "for a bit longer", he added that any continued spending will not require the Government to undertake any additional borrowing beyond that already approved by Parliament to cover the 2020-2021 Budget's projected $1.327bn fiscal deficit.

Instead, Mr Turnquest indicated that the Ministry of Finance would look to reallocate existing Budget funding to provide extended support for individuals, households and businesses amid the wait for tourism's return and ongoing uncertainty over the strength and timing of its comeback.

He acknowledged that the delayed re-openings of properties such as Baha Mar, Sandals Royal Bahamian, the British Colonial Hilton and Club Med had dashed the Government's hopes of making quick, significant inroads into the unemployment rate and welfare dependency, and hinted that the Government had little choice but to continue propping up the economy for the time being.