The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

AS government plans to ramp up its social services initiatives in anticipation of implications due to the ongoing war, officials want to ensure that the ministry responsible for assistance has a sufficient budget to help people in need.

This according to Deputy Prime Minister Chester Cooper on Friday, as he foreshadowed what government believes will be a domino affect of Russia’s invasion of Ukraine.

Government has already expressed concerns that the price at the pump could go as high as $8 per gallon.

Mr Cooper told the media that the issue of increasing prices and inflation is something that the government has been contending with for “sometime”.

He said: "It is driven by supply chain disruptions mainly in our key markets where we get goods and services from. For example in the USA, they’ve had difficulties hiring truck drivers and where there is this kinda scarcity prices will ultimately go up. If you look at this very simple example if you can’t find a worker you will pay more to get that worker and this is what has happened in many industries. This is really the cause of the price increases that we’re seeing and expect this to continue short to medium term.

“The government is ramping up its social services initiatives to ensure that social services is able to support persons in need. We are committed to providing relief to those who find themselves in vulnerable positions. The government has reduced VAT to ensure that the overall cost of goods services are lowered we believe this is working and we continue to look at the possibility as laid out in our blueprint for change to look at improving and increasing the minimum wage.”

His comments came the day after Senator Darren Henfield spoke about the invasion’s impact and criticised the Davis administration's decision to reinstate VAT on breadbasket items.

He made the comments during the Free National Movement’s convention on Thursday night.

“Early this morning, Russia launched a long-threatened attack on Ukraine, which has the potential to evolve into all-out war in Europe,” Henfield said at the time.

“Conflict in Europe will be felt here at home and elsewhere in the world. This is why in parliament last week we indicated that the cost of food we eat in country, which is admittedly driven by external events, is just too high and is primarily driven by events beyond our control. Inflation is now at a 40 years high. Shipping costs are almost prohibitive. The price of fuel will likely increase, and we will pay the price.

“These are among the reasons why we in the FNM so strongly opposed the government’s determination to reinstate VAT on breadbasket items, which low-income families and small businesses all across this country depend on for their daily sustenance. We begged the PLP to wait for things to settle down a bit before taxing food that the families to keep pace with rising prices in our country.

“We say again to the government of The Bahamas it’s not too late for you to reverse your decision to tax the local sale of medicines and medicinal drugs, baby food, female supplies, and the breadbasket, which we had previously in this FNM government zero-rated. We also implore the government to take concrete steps to ease the impacts of these confluence of events upon the lives of Bahamians."