The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

A FORMER labour official believes government should focus more on introducing a liveable wage as opposed to just increasing the national minimum wage given inflation coupled with an already high cost of living.

John Pinder, the former labour director, said studies conducted on the issue when he was in office and even before then determined that $350 a week was a livable wage for Bahamians.

However, he also noted that in those days, prices were not as high as they are now and some taxes like VAT had not even been introduced yet.

“We looked at a liveable wage, based on the basic necessities that human beings need to survive. We’re talking about shelter, water, food, clothing and way back then we looked at $350,” Mr Pinder told The Tribune yesterday.

“Okay, so I believe that it’s time for the government to make a move on that but let me add, when we’re exploring this whole thing about the natural resources thing and being able to give Bahamians money back, this was one of the ways in which we said we could address the liveable wage. For example, if you’re making $200 a week, we thought the livable wage should have been $350.

“Through the natural resources, you will have been able to receive a cheque to make a difference and not that you sit home and don’t work at all so education would have been free. Energy should have been free. Healthcare systems have been free.”

His comments came days after Prime Minister Philip “Brave” Davis announced upcoming increases in consumers’ electricity bills.

The rate hikes are set to be reflected in consumers’ electricity bills beginning next month.

The announcement has prompted calls for the government to do more to assist Bahamians struggling with the high cost of living, among them increasing the country’s minimum wage.

Currently, the national minimum wage is $210 per week; however, the Progressive Liberal Party committed to increasing it to $250 per week during last year’s election campaign, as well as to examine the creation of a liveable wage.

Labour Minister Keith Bell said earlier this week that the Davis administration will soon make an announcement on the minimum wage increase.

However, for Mr Pinder, it’s something that should have been implemented long ago.

“Let me say the timing is bad right now,” he added, “because once the electricity bill increases, and I have to support some statements being made by Cassius Stuart. I have to support that because under the last FNM administration, I had a conversation with a company that could have reduced the electricity bill in the Bahamas by at least 40 percent in the first 18 months and could have gone as low as 50 percent cut it in half within three years.

“That proposal is just sitting around somewhere in the government agencies, and I don’t (know if) anybody ever reviewed it.

“But I’m sure it’s there and – you can tell that we don’t care about reducing electricity bills in this country.”

He also predicted that the government would receive pushback from the private sector if it were to raise the national minimum wage.

“I can guarantee there will be some retaliation from the private sector via the Chamber of Commerce and the hotel sector, because it’s already those sectors that’s crying about electricity bills now. So, I believe it’s time for us to use a new source of energy and the government has proposals. Before this government came in, I gave a proposal and there’s another proposal on the board now, that can reduce the energy costs and if we could control the cost of energy in the country and we can do it,” Mr Pinder also said.