The Tribune

* Cabinet approves jobless benefit continuation

* Move brings relief for thousands unemployed

* Business assistance initiatives also carry on

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The deputy prime minister last night confirmed the Government will allocate $45m to the continuation of its COVID-19 support initiatives after the move was approved by the Minnis Cabinet.

K Peter Turnquest, in messaged replies to Tribune Business questions, said both the Government-funded unemployment benefit and various private sector assistance initiatives will be further extended beyond today's intended expiry.

Acknowledging that the tourism industry's delayed return meant the extension was inevitable, Mr Turnquest said the unemployment benefits scheme "will feature adjustments" and be vetted to ensure Bahamians who have returned to work are excluded from welfare support.

Pledging that the resources will be directed to "our most vulnerable population" and those still unemployed, the deputy prime minister said the $45m will be found from the repurposing of existing funding already approved in the 2020-2021 Budget.

"Cabinet has approved an extension to the [unemployment] programme, which includes support for small and medium-sized enterprises (SMSEs) and large taxpayers through tax incentive programmes," Mr Turnquest told this newspaper. "These programmes are geared towards supporting continued employment of staff.

"It is estimated that this programme will result in additional costs of up to approximately $45m. This funding will be reallocated from contingent funding and reallocation of other delayed commitments."

Confirming that the tourism industry's slower-than-hoped-for restart had left the Government with little choice but to extend such support beyond their planned September 30 end, Mr Turnquest added: "With the delay in the return of the tourism sector to full production, there is a continued need to provide assistance to our most vulnerable population.

"The programme will feature adjustments in the scheme, and persons returned to work will be rotated off so as to provide an opportunity for those still adversely affected by the circumstances brought on by the pandemic."

Mr Turnquest did not detail what he meant by "adjustments", but his remarks indicate unemployment benefit applicants will be scrutinised to ensure they remain jobless, thus enabling the Government to crack down on waste and potential fraud to direct funds where they are most needed.

While the extension had been widely expected, the Government's decision at yesterday's full Cabinet meeting will likely be greeted with relief by thousands of unemployed Bahamians - especially those in the hotel sector - as well as many businesses.

For jobless Bahamians it gives certainty that they will still receive income support. This amounted to $150 per week under the Government's previous unemployment benefit extension, which provided a further 13 weeks of welfare payments once the National Insurance Board (NIB) benefits were exhausted.

Brensil Rolle, minister of the public service who has responsibility for NIB, yesterday said almost $150m in unemployment benefits had been paid out to-date between the social security system and the Government. Mr Turnquest had earlier this month pegged the figure at $146.5m, adding that some 43,200 persons and their families had benefited from this welfare support.

As for the private sector, the Business Continuity Loan initiative targeted at SMSEs as well as the tax credit and deferral programme will also be continued. Mr Turnquest, during a House of Assembly presentation in early September, said some 545 small businesses and entrepreneurs had benefited from $39m in loan and grant financing as at June 30, 2020.

He added that this had helped to preserve some 4,304 jobs, and the receipt of a $200m loan from the Inter-American Development Bank (IDB) and $40m from the Caribbean Development Bank will finance the Government's Budget pledge to provide $55m in additional small business funding during the 2020-2021 Budget year.

The tax credit and deferral initiative, which is targeted at VAT registrants and allows them to offset Business Licence fees and VAT owed to the Government in exchange for payroll support, was said by Mr Turnquest to have aided 80 businesses and preserved more than 9,000 jobs by early September. The amount of taxes either credited, or deferred, was $22.9m.

Mr Turnquest last night did not state how long the COVID-19 support initiatives have been extended for, but based on the $45m allocation it is likely they will last for a further one to two months.

This will effectively take the extension to either the beginning or end of November, which is when the intentions of major resort properties as to their likely re-opening dates will become clearer due to the Thanksgiving holiday weekend - which traditionally marks the winter tourism season's start - falling during that month.

The Government had been hoping that major resorts would have been encouraged to re-open by the Ministry of Tourism's recommended October 15 restart date for the industry that is The Bahamas' largest private sector employer, as this would have given hotels time to prepare for Thanksgiving, Christmas and the upcoming winter season.

However, the delayed re-openings of properties such as Baha Mar, Sandals Royal Bahamian, the British Colonial Hilton and Club Med dashed the Government's hopes of making quick, significant inroads into the unemployment rate and welfare dependency.

Tourism's anticipated return was seen as moving persons from the social security/unemployment lines and back to work, thus reducing pressure on the Government and National Insurance Board (NIB).

But besides the extended resort closures, other major hotels such as Atlantis have also held-off on setting a re-opening date as they assess multiple concerns including the level of COVID-19 infections in both their major source markets and The Bahamas.