The Tribune

By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

PRIME Minister Philip “Brave” Davis defended his administration’s 2024/25 budget yesterday after the opposition said it failed to address critical concerns, namely the future of Bahamas Power and Light (BPL) and Grand Bahama.

Mr Davis did not give detailed updates on either issue in the House of Assembly yesterday, only noting that announcements were forthcoming.

“Even though the details have yet to be announced, members of the opposition are already complaining and stirring up anxiety over our proposals,” he said, referring to the government’s planned reforms for BPL. 

“We have not forgotten that their big solution to the energy problem was the fraudulent Oban deal, which they now try to pretend never existed. Our initiative is real. In short order, a significant announcement will be made before the end of this budget debate.”

Regarding Grand Bahama, Mr Davis said negotiations for the sale of the Grand Lucayan hotel are at “an extremely promising stage” and that the government hopes a positive announcement is imminent. 

The opposition also raised the inflation issue, accusing the Davis administration of being out of touch with how the cost of living impacts the average Bahamian.

Mr Davis pushed back at this, saying there is a mistaken assumption that “government taxes and high imports” are to blame for the high cost of living.

“If transportation costs and import taxes and duties are stripped out, the underlying price is still inexplicably high,” he said. “When compared to other countries with similar imports and taxation arrangements, especially those in the region, we still rank poorly.”

“Since our first budget in 2021, we have introduced a number of measures designed to reduce the cost of living, but they have had little success in producing reductions in prices to the consumer. Madam Speaker, it is clear that something more structural is at play.”

Mr Davis said his administration was tackling inflation by undertaking fundamental reforms through upgrades and digitisation efforts and developing policies to make The Bahamas a less expensive destination.

He also attacked rhetoric demonising taxation, saying: “We must dispel this idea that somehow all taxes are bad.”

He said there is a growing demand for better services and improved infrastructure, but funds must be available to address it.

“In developing our taxation policy, we also have to deal with the realities of today. We came into office facing an inherited debt of more than $10 billion,” he said. “That has to be paid off, along with the high rates of interest that they agreed. We need tax revenue to do it.”

“Worse still, that debt was used to pay salaries and other current expenditures, so the country did not benefit from any substantial investment. They did not build a single new road, school, hospital or other significant item of infrastructure, so that debt was not invested for any kind of future potential revenue. All of this has to be addressed, along with the current spending requirements.”

Mr Davis also responded to the opposition’s accusations that they were breaking the law and ignoring legislation regarding fiscal responsibility.

“They complain repeatedly about deadlines for reporting and procurement requirements, which they implemented without proper support, infrastructure, or training,” he said. 

“Had they remained in office, they would also lack the resources to meet those requirements.”

Mr Davis said his administration’s budget was the right one “for our time.”

He said his administration had done a lot, but there was still more to do.

“With prudent policies and an effective fiscal strategy, we are steadily and determinedly turning the economy around,” he said.

“Revenue is up. Debt to GDP is down, and the deficit is down by $1 billion. From the multiple crises that the country faced in 2021, here we are, back on our feet, talking about growth and investment and opportunities, rather than rescue and headwinds and mountainous debt.”