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Last Updated: Feb 13, 2017 - 1:45:37 AM |
 The past two years of PLP governance in the Bahamas has been plagued by a slew of economic miscalculations, rapid increases in the country’s national debt, reckless spending and countless broken promises.
While in opposition the Progressive Liberal Party (PLP) asserted that they had the answers to addressing the country’s ailing economy. In their charter for governance the PLP promised that on day one and within its first 100 days of governance, this administration would work to expand the economy, create jobs, and encourage entrepreneurial endeavors.
That however, has not happened. Bahamians have instead been threatened with higher taxes and are forced daily to witness the decimation of the country’s middle class. Meanwhile, government officials continue to spend tax payer funds wastefully on extravagant trips, poorly planned and poorly executed initiatives. Now, with the advent of Value Added Tax (VAT) the country’s economy is on the verge of further collapse predicated by a lack of information and proper oversight.
Since announcing plans for major tax reforms, the Christie government has attempted to bully the local business community into VAT but has so far failed to table the important accompanying legislation and for months, had been unwilling to even consider alternatives. By its own estimation, the government has successfully collected only 29 million of the country’s outstanding taxes. That figure according to the central bank represents a decline of nearly 10%. Certainly, better management of the country’s finances and an aggressive plan to recoup uncollected taxes could negate the need for new taxes altogether.
Statistics recently compiled and released by the Central Bank of the Bahamas show that the national debt grew by a staggering 11.5% year on year in the fourth quarter of 2013. That same report further cited little changes to domestic economic conditions which, by all accounts, remained “relatively flat”. That is indeed a far cry from the promises of economic revitalization promised on the campaign trail.
It has long been proven that small and medium sized businesses remain the driving force of any strong economy; rather than encourage the creation of new small and medium sized enterprises however, this administration has continued its trend of impeding such endeavors. The World Bank, in its 2014 report on the ease of doing business ranked the Bahamas 84 on a list of 189 countries, cementing our island chain as one of the most difficult jurisdictions in the region in which to do business. In key areas such as starting a business, the Bahamas dropped in rank by 5 spots; in the area of getting credit, the country dropped 4 spots and in terms of protecting investors, the country’s rank declined 2 spots.
In addition to what can only be described as a lackluster performance on the issue of economic growth, this Christie led administration has also failed to get Bahamians back to work. Unemployment in the Bahamas since the PLP took office has increased overall to 16.2%. On Grand Bahama Island, that number is a staggering 19.5%. According to the 2013 Labour Force Survey, young Bahamians between the ages of 15-24 were the most affected by unemployment. At an overall rate of 30.8%, the numbers represent an increase over past figures.
In recent weeks, widespread job cuts and layoffs within the banking sector, and terminations at hotel properties around the country continue to lengthen unemployment lines and drive many more Bahamian families further below the poverty line. These disturbing statistics coupled with strained labor relations further threaten the country’s fragile economic stability. For an administration which claimed to “Believe in Bahamians” that is simply unacceptable!
The time has come for the government to advance a focused National development strategy; one which addresses the country’s current challenges such as insufficient Bahamian ownership, insufficient private sector activity, high energy costs and the even higher cost of living. This administration has failed to create the kind of opportunities which empower Bahamians of all social standings. While hundreds of Bahamian families continue to live without the necessities like electricity, the wealthy among us continue to make millions as a result of the PLP imbalanced economic policies.
The Democratic National Alliance (DNA) calls on the government to keep its promise to the electorate by working to broaden the country’s economic base; curb wastage within government agencies and partner with the private sector to create a strong economic policy free of tenets which arbitrarily impede the country’s economic and national development.
These most necessary changes can only occur through the development of a culture of transparency and accountability on the part of elected officials. The DNA again stresses the need for a Freedom of Information Act which will ensure that this and successive governments keep their promises to the electorate and act in the best interest of the country.
Chris Mortimer
DNA Deputy Leader
© Copyright 2014 by thebahamasweekly.com
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