The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

PRIME Minister Phillip “Brave” Davis has revealed his administration has approved over $2bn in investments since assuming office last year.

In his budget communication in the House of Assembly yesterday Mr Davis said the investment - which he did not detail - would allow for additional revenue growth and more economic opportunities for the Bahamian people.

The Prime Minister said since being elected to office, his administration has worked hard “to lay down a strong foundation for change across our islands.”

Pointing to the government’s decision to remove the COVID-19 emergency orders, reopen the economy and relaunch projects, Mr Davis told MPs the country’s future is already looking brighter under the direction of his administration.

“We have approved over $2 billion in new investments in just the last eight months. That’s a lot of new opportunities and revenue coming our way. But I want to emphasize that we have a new way of doing business,” he said.

“First, it is important to us to attract major, top-quality investments in the Family Islands, as opposed to more Nassau-centric efforts in the past. Second, we are working hard to make sure new investments have a positive and meaningful impact on the community in which they’re located.

“We’re looking at past agreements, too, and a new compliance unit within the Bahamas Investment Authority will ensure that promises made to local communities will be promises kept. This is not an adversarial process; we are just committed to making sure that promises made to Bahamians on paper actually materialise in our communities as real and tangible benefits.”

Mr Davis said under previous administrations, concessions offered to investors have sometimes exceeded the economic benefits of the country.

However, he was adamant that “no more will this be the case.”

He continued: “When we evaluate new investments, we are also paying attention, not just to direct employment, but to spin-off opportunities for Bahamian entrepreneurs. We’re also seeking compliance with transfer of knowledge programmes, which are designed to ensure Bahamians are trained to hold skilled labour positions currently held by foreigners.”

Speaking on his administration’s efforts to promote Family island development, Mr Davis said one particular innovation he is most excited about is the creation of a Family Island Development Trust Fund, which is a sub-fund of the National Infrastructure Fund.

“We have allocated ten per cent of overall revenue collected in the Family Islands, from property tax and road traffic fees, for this fund,” he said. “The $200 million will aid our efforts to make immediate and significant improvements to Family Island infrastructure,” he said.

“We also propose to leverage aviation-related revenue to create a fund for aviation infrastructure, which – combined with the Family Island Development Trust – will accelerate the reconstruction of Family Island airports.”

He also assured the fund will not be exclusively controlled by central government, though he said several ministers, including the Minister of Finance, would oversee the fund supported by the appropriate technical officers.

Mr Davis continued: “The legislative framework to accommodate the Family Island Infrastructure Fund already exists in the Sovereign Fund Act. Later this year, we will select a financial advisor to lead the first round of fund raising for the Fund.”

“These funds will be used for building or maintaining infrastructure in the Family Islands, including roads, seawalls, landfill sites, and any public infrastructure critical to development. The Fund will also be a source of funding to local government districts, allowing them to purchase the capital equipment needed to ensure that the infrastructure is properly maintained.”

This comes as the country is grappling with COVID’s impact along with the inflation.

Yesterday, Mr Davis reiterated that three key priorities for his administration in the upcoming fiscal period include bringing relief to Bahamians struggling with inflation, stimulating job creation and strengthening the nation’s security.

Relief measures announced by the government include increased social assistance, minimum wage increases for the public service and duty reductions on several food items and construction materials among other things.

“These measures reflect our belief that it’s important to help Bahamians right now, despite the very serious fiscal restraints we face,” he said. “None of these measures are a magic bullet. But they will help. We are moving in the right direction.”