The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The prime minister yesterday hailed “a defining moment” in the government’s management of the public finances after a comprehensive regulatory reform package was debated in Parliament.

Dr Hubert Minnis told the House of Assembly that the Public Financial Management (PFM) Bill and Public Debt Management (PDM) Bill, together with the Public Procurement Bill and Statistics Bill, are “long overdue reforms” to how the country’s finances are run.

He said the Public Financial Management Bill applies “for the first time to activities of all public bodies”. Caught in this net are ministries, various departments and government agencies; “agencies” that comprise non-commercial State-Owned Enterprises (SOEs); and “government business enterprises” that are defined as SOEs involved in commercial activities but not expected to make any profits.

The Public Debt Management Bill, meanwhile, will create a “comprehensive” legal framework for promoting greater clarity and discipline in debt management operations in The Bahamas.

Dr Minnis added: “The overriding objectives of the Public Debt Management Bill are to consolidate and modernise the existing debt management provisions”, which are spread out across the Financial Administration and Audit Act 2010, the Bahamas Registered Stock Act and Regulations and the Developments Loans Act 1990.

Speaking to the Statistics Bill, Dr Minnis said this will provide for the establishment of a Statistics Institute so the government can be supported by “informed decision making”. The Bill will address the shortcomings of the current Statistics Act and will use a modernised CARICOM model for legislation.

Dr Minnis said: “Through the Statistics Bill, the government is seeking to establish a credible institution, with an advisory oversight mechanism, whose mission and functions will guide the strategy for improving the quality, timeliness and coverage of national statistics, which is vital input to policy decision making.”

Turning to the Procurement Bill, Dr Minnis said it will have a “significant impact” on the efficient use of public funds. It will allow for proper management and administration of public contracts, in an attempt to limit wastage, and permit greater transparency in the bidding process.

The Procurement Bill will also set aside specific contracts for small and medium-sized enterprises (SMEs), but Dr Minnis did not identify a particular percentage that the Government will allocate to these companies.