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Last Updated: Feb 13, 2017 - 1:45:37 AM |
The PM’s mid-year communication on the 2015/2016 Budget stated that the government’s medium-term fiscal plan is targeted and balanced, consisting of four equally vital components, namely: 1) restraining the growth of public expenditure; 2)modernizing and enhancing revenue administration; 3) securing new sources of revenue; and 4) growing the economy.
This Administration has fallen short on all four accounts. However, we should be encouraged because our Prime Minister states that the positive outlook is “ that growth in the United States, our major trading partner, is expected to be slightly more buoyant, expanding by 2.4 per cent in 2016, with a further modest strengthening in 2017.” Unfortunately, there was no mention of the challenges that we face in our number one industry Tourism due to the US lifting the embargo on Cuba. Not to mention that we did not make the 2016 Traveler’s Choice list for the best Caribbean Island Vacation Destinations, with Jamaica leading the pack.
Further, our Prime Minister advised that “one critical factor for global prospects is the outlook for the Chinese economy which is presently transitioning from a focus on investment and manufacturing to a more sustainable path based on consumption and services; while down somewhat from recent experience, real growth in China is still forecast at just in excess of 6 per cent per annum.”
China has significant investments in the Bahamas including: one-half of the interest in Grand Bahama Port Authority through a Hong Kong based entity which also purchased Freeport International Airport, Freeport Container Port, the gift of the national stadium, the Export-Import Bank of China funded the Baha Mar Project; or that China granted a loan to the government of the Bahamas to build the four lane highway from the LPIA to the national stadium (note: a condition to both loans was that the project have a high component of Chinese workers). Similarly a loan was granted to construct the port in Abaco; the Chinese Government purchased the British Colonial Hilton, the 3rd largest tourism resort in the Bahamas. Further, the government announced that the Chinese will play an integral part in building our city center in Nassau. Further, there was the recent request by the China Construction for economical citizenship as confirmed by the Prime Minister in May 30th’s edition of the Nassau Guardian. It is further alleged that the Chinese requested a 30 year exemption on casino license and VAT as well as an additional 25% in concessions.
It is clear that this Administration’s hope for turning around the Bahamian economy is at best steeped on the reliance on China, which has over the past few years fast become a significant investor holding at least 20% of our economy and can impose significant influence on the decision making of our government.
However, under a DNA government we will endeavor to create an Economic Environment that facilitates employment, diversification of our economy and move away from the dependence on only the Tourism and Financial industries. We will create a business environment that facilitates entrepreneurship, innovation & local ownership. The fact is we cannot borrow our way to a better tomorrow. We must grow our economy through innovation and local ownership in every single sector of our economy.
Brenda T. Harris
DNA Candidate for Bain & Grants Town
DNA Spokesperson for Investments
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