The Tribune

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

THE Davis administration has pledged to “rescue” the economy, stabilise public finances, decrease value added tax, as well as ensure anti-corruption and government transparency.

In line with its campaign promise to bring relief to taxpayers, the Progressive Liberal Party government assured Bahamians that the 12 percent value added tax rate will be lowered to ten percent across the board.

In the Speech from The Throne read yesterday during the opening of Parliament at Baha Mar, the Davis administration also reiterated its plans to increase the country’s minimum wage and included a pledge to “phase in” a liveable wage.

Other notable pledges include introducing a framework for a cannabis industry.

In regards to its VAT tax decrease pledge, the Davis administration said this would be delivered despite the “bleak outlook” of public finances.

“The present economic crisis has left a trail of unprecedented misery among the Bahamian people and our public finances in a dismal state,” Governor General Sir Cornelius A Smith said as he read the speech.

“Despite this bleak outlook, my government will introduce measures that will bring immediate relief to the Bahamian people and to businesses. My government will amend the VAT Act to lower the rate of VAT across the board to 10 percent.”

Apart from a pledge to build new hospitals in both New Providence and Grand Bahama through public-private partnerships, the government has also committed to restoring the economy. This will be done through a series of measures, the governor general said, before hundreds gathered at Baha Mar’s convention centre.

“My government will focus on issues that will rescue, restore, and strengthen the economy,” he said. “My government will pursue strategies to address infrastructural needs of the country. My government will pursue measures to stabilise public finances and increase public revenue.

 “My government will implement a debt management plan to address the historic debt burden and deficit.”

 Regarding the issue of marijuana, the government said it would introduce a “regulatory framework” for the cannabis industry and to expunge the records of young people convicted of minor offenses related to use of the drug as part of its five-year legislative agenda.

 The pledge came as no surprise as Prime Minister Philip “Brave” Davis, while in opposition, expressed full support for both issues.

 Plans for a new slate of laws also featured a declaration that the government will not tolerate corruption. This will be supported by the introduction of effective anti-corruption legislation.

 “My government will not tolerate corruption and is committed to introducing effective anti-corruption legislation,” the speech noted.

“. . .My government will increase accountability and transparency. My government will fully implement the provisions of the Freedom of Information Act.”

 Additionally, the government intends to introduce measures to amend the rules of the House of Assembly that will enable fixed sessions of Parliament.

 “My government will introduce a regulatory framework for the cannabis industry,” Sir Cornelius said.

 He further revealed that the government planned to expunge criminal records as part of its Second Chance Programme that will allow people who have served time in prison to enter the job market.

Regarding government’s planned legislative work during its term in office, the Speech from the Throne revealed a “first priority to introduce laws that do away with current Emergency Powers Orders introduced under the former Free National Movement government in response to the COVID-19 pandemic.

“My government fully understands that we cannot resolve our country’s economic crisis until we have resolved the health crisis,” the governor general said. “The COVID-19 crisis has exposed many of the weaknesses and vulnerabilities of our healthcare system.

“As a first priority, my government will, therefore, introduce legislation and policies to fully address future major health risks to avoid the need for emergency orders.”

 The government also promised to introduce catastrophic healthcare insurance to make healthcare more affordable and to address mental health issues.

 The government also plans to introduce legislation to facilitate a comprehensive programme of digitisation for the country and laws that protect consumers.

Further a Davis-led administration will introduce legislation to provide for the establishment of an Urban Renewal Authority to improve the quality of life of residents throughout The Bahamas.

 Several amendments to existing laws are planned to ensure fiscal prudence.

 This involves amending the Procurement Act to strengthen provisions for Bahamian participation in government procurement at all levels; amending the Fiscal Responsibility Act to strengthen the independence of the Fiscal Responsibility Council and amending the Public Financial Management Act to ensure full compliance with all existing legislation.

 The government will also amend the Commercial Enterprises Act to ensure that when jobs are being filled, Bahamians receive the highest priority.

 The plans for economic recovery will also include initiatives for Grand Bahama. The island has been in an economic slump for years.

 “My government will capitalise on the ongoing successes of the industrial sector on Grand Bahama and use the investment arm of the Ministry for Grand Bahama to create a one stop shop to attract new local and direct foreign investment by way of duty-free concessions across the entire island,” Sir Cornelius said.

 The Davis administration also committed to ensuring that the economy works for all Bahamians and plans to amend the Hotels Encouragement Act to provide better incentives for Bahamian-owned and joint venture boutique hotels along with related tourism offerings.

 Legislation to create tax incentives for small and medium sized enterprises owned by Bahamians also will be introduced, according to the Speech from the Throne, which also foreshadowed an intention to introduce a Merchant Shipping Bill.

 It is envisioned that the bill would bring the country in line with its international obligations, contemporary practices, and to enhance a competitive edge in the global maritime industry.

 A new agenda also means keen attention to The Bahamas’ current building code.

 “The government will introduce a new and progressive building code to increase resilience in the face of climate change,” Sir Cornelius said yesterday.