The Tribune

By LYNAIRE MUNNINGS

tribune Staff Reporter

lmunnings@tribunemedia.net

SHANE GIBSON, a former labour minister responsible for the National Insurance Board, believes the Davis administration should raise NIB contribution rates now rather than wait until 2024, warning next year might be no better for a rate hike than the current economic environment.

Leslie Miller, another of Prime Minister Philip “Brave” Davis’ former colleagues,  expressed similar sentiments yesterday.

“With the greatest respect to the PM,” Mr Miller said, “I think this is one of those times when you just gotta bite the bullet. I say it like Nike, just do it. What you putting it off for? I don’t think Bahamians will be as against it as they think. If you want to wait a year, let’s hope to God nothing unforeseen happens that affects you.”

The comments of the former Christie administration officials come after Mr Davis cited the strain of the global inflation crisis when explaining why NIB rates won’t increase in the upcoming fiscal year.

“My only thing,” Mr Gibson said, “is a lot of time we delay these things and then something else happens, like let’s say a hurricane happens or some other incident happens that creates hardship on people and they say oh, I can’t do it next year no more because hardship happens.”

“I have never heard anyone say now is the time to increase tax or impose tax or to increase rates or increase wages. Anything that calls for increasing or expending money, the talk is always now is not a good time. Have you ever heard anyone say now is the time to increase or introduce new taxes? Never.”

Recurrent actuarial reports have warned about NIB’s bleak future, with the latest indicating the fund could fail as early as 2028 if action is not taken.

“You have to use a judgement call based on the information available to you,” said Mr Gibson, who was responsible for NIB from 2012 to 2017.

“Based on the information available to me, I think it needs to happen now but obviously the Prime Minister and others would have different information that cause them to say no, wait till next year, and my only hope is that nothing happens between now and next year that cause them to have to delay it again.”

Mr Gibson said the proposed 1.5 per cent rate increase is too low to solve NIB’s woes.

“When the plan was introduced back in 1973/74 when it was introduced, at that time we knew the rate was too low, so every actuarial report from then to now said the rate should increase. So even the rate that they choose to increase it by now won’t be sufficient but they want to do it in a way that doesn’t cause any additional hardship on those persons who could least support an increase at this time.”

State Minister in the Office of the Prime Minister Myles Laroda has said NIB contribution rates must increase by 1.5 per cent three or four times in the future to stabilise the fund.

Mr Gibson said politicians are weary of the political implications of raising contribution rates.

“I think some people will use this to get the governing party to lose support, but the more sensible Bahamians would see that this is something that’s absolutely necessary no matter who is in government at this time,” Mr Gibson said.

The former Golden Gates MP also called on NIB to improve its services.

“I’ve had interactions with some inspectors who, when they speak to you, they speak to you in a very demeaning way, and they’re not customer friendly.

“I think if the employees in particular at NIB want to see this being more receptive to persons, then their attitudes in a lot of instances have to change and their services must be better. When customers receive good service, they don’t mind paying additional contributions. When you’re asking them to pay additional contributions and the service is not good, that’s a problem.”