Rt. Hon.
Hubert A. Ingraham
Prime Minister
New Year’s
Address to the Nation
4 February
2010
Continuing
my practice of addressing you at the beginning of each year, I am pleased
once again for the opportunity of sharing with you my outlook for the
New Year.
We were fortunate
over the last year not to experience the ravages of any natural disasters,
in particular hurricanes to which we are annually exposed and which
many scientists suggest are becoming more powerful due to climate change.
Sadly and tragically for our neighbours in Haiti, this year has begun
with one of the worst natural disasters in that country’s history
and, indeed, in the history of the peoples of this hemisphere.
I welcome the
outpouring of goodwill toward Haiti demonstrated by so many in our private
sector and by our church communities. I encourage all those able
to assist to do so and I take this opportunity to remind you that a
special account has been opened in branches of all the Clearing Banks
to receive donations to the Haiti Emergency Assistance and Reconstruction
Fund.
2010
– A BETTER YEAR
2009 was a
difficult year. The Bahamian economy faced significant headwinds
and is estimated to have declined by about four per cent as the global
downturn bore heavily upon us.
Tourism contracted
sharply. Construction activity weakened as foreign direct investments
fell. Unemployment rose and government revenue decreased.
It was indeed a difficult year. But we now expect that 2010 will
be better.
The global
economic picture is beginning to improve though recovery from the economic
and financial crisis will take time. US and international recovery
will positively impact our economy. The economy of the Bahamas
is inextricably linked to the world economy and predominantly the economy
of the United States. We will use these gains as they occur to
begin reclaiming ground lost due to the recession. We will also
move aggressively on initiatives we are taking to transform our nation
and achieve greater peace, productivity and prosperity in the years
ahead.
Indications
are that the worst of the recession is over. Some improvement
in the job market is underway. Tourism numbers are improving and
government revenue is showing signs of some firming up.
We fully expect
that with improving economic conditions we will be able to refocus on
our traditional fiscal targets -- lower government deficits, less borrowing
and more favourable debt --GDP ratio.
An economic
turnaround will permit us to reinvest in our fiscal health and reestablish
the necessary fiscal space to weather the next economic storm when it
comes.
MOVING TO
BRIGHTEN OUR FUTURE
We were careful
during the economic crisis to target government spending on initiatives
that would yield returns for our nation long into the future and better
position us to take advantage of the turn around in our economic fortune.
Toward this end we invested heavily in capital works.
I was especially
pleased with the “on-time and within-budget” completion of the $45
million harbour dredging project which in early December facilitated
the inaugural call on Nassau by the world’s largest cruise ship.
The dredging of Nassau Harbour created some 114 construction jobs for
Bahamians.
The Government
expects to conclude an agreement to remove freight handling activity
from downtown Bay Street and to relocate it to Arawak Cay. Toward
this end Government intends to lease land at Arawak Cay to a company
formed to undertake the creation of a new $65 million port facility.
The company
will be owned 40% by the Government, 20% by the general public and 40%
by the private sector engaged in shipping and freight handling for the
island of New Providence.
A container
depot will be constructed at Gladstone Road to facilitate the timely
transfer of large containers not scheduled for direct delivery to businesses
from Arawak Cay. It is intended that most containers, bearing
non-perishable goods, will be transferred during the night-time hours
thereby reducing the impact on traffic and alleviating much of the congestion
now caused by the movement of large container-bearing trucks on our
busy roadways during peak traffic periods.
Work on the
$275 million Phase I redevelopment of the Lynden Pindling International
Airport is continuing on schedule for a 2011 opening of our new US Departure
Terminal. At the peak of construction 400 to 450 construction
workers will be engaged. Eighty per cent of the work to date has
been performed by Bahamian workers.
The construction
of the new $12 million Nassau Straw Market has commenced, and the $8
million extension to the Sandilands Hospital is ongoing. The two
projects are expected to create another 280 construction jobs,
And, work is
in train for the planning of a new Princess Margaret Hospital designed
to meet the needs of the modern Bahamas.
The new Ministry
of Tourism Centre located on JFK Drive, in what was originally planned
as new offices for the Mortgage Corporation, is nearing completion.
You will recall that this project had been brought to a standstill in
early 2007 when the contractor abandoned the site.
The new Magistrates
Court Complex on South Street, New Providence, designed to house 12
Magistrates’ courts, is scheduled for completion in June this year.
This project had also been stalled as a result of poor project management.
The completion of the complex now will, we expect, help reduce delays
in the operations of the Magistrates’ courts.
The Supreme
Court building in downtown Nassau will undergo extensive refurbishment
to improve the conditions under which judges, lawyers and support personnel
work. And, the Government will purchase and renovate Ansbacher House,
located between Bank Lane and East Street, to increase Supreme Court
rooms and to further improve work conditions in the judicial service.
Twelve Supreme
Courts, dealing with civil and criminal matters and including a dedicated
Commercial Court, are to be located in the Bank Lane area. Currently
the Court is spread between different locations at Bank Lane, in the
British American Building, in the Moseley Building and at 50 Shirley
Street.
I am also pleased
that the first of the new road corridors, under construction as part
of the $130 million New Providence Road Enhancement Project, are scheduled
for completion in May and June of this year. Nearly 180
Bahamians are presently engaged directly and by way of subcontract on
this project.
We expect that
portions of these corridors will be integrated into the road network
ahead of that time – for example at Saunders Beach where the new traffic
circle is likely to become operational in short order permitting work
to commence on the development of the beachside park.
The beachside
park at Saunders Beach with ample off-road parking, a defined play area
and rest room facilities is scheduled to be completed by this summer.
We have secured
funding from the Chinese Government for the construction of a four-lane
highway from the Lynden Pindling International Airport to the College
of The Bahamas.
And, we have
caused the construction of the new national stadium at the Queen Elizabeth
Sports Centre to be named in honour of Bahamian sports legend, Tommy
Robinson.
Road works
will continue on a number of Family Islands: in Abaco, Eleuthera, Harbour
Island, Current and Current Island, Acklins and Ragged Island.
Contracts for
the construction of new government office complexes in central Abaco
and in Freeport, Grand Bahama will also be awarded next month creating
as many as 525 construction jobs on those islands.
New power plants,
now in their testing phase, are scheduled to enter into full operation
in Bimini and Hatchet Bay, Eleuthera in March of this year. The new
power plants at Wilson City, Abaco is scheduled to come on stream later
this summer. These will address the perennial shortfall of power
generation required on those islands.
The Ministry
of Health and the National Insurance Board will complete the planning
and commence the construction of two hospitals, one in Abaco and the
other in Exuma.
Planning for
the development of two new ports, one in north Abaco and the other in
Exuma is continuing.
All these projects
are helping to maintain existing jobs and to create hundreds of new
jobs in the construction sector. They are also broadening opportunities
for spin-off businesses in the economy which in turn create additional
jobs boosting individual and family incomes. We expect that these
projects will generate enormous economic gains for our people well into
the future.
We also expect
additional benefits to come to our economy from other initiatives being
undertaken by the Government. These include:
-
A new investment
promotion thrust;
-
A more refined and
diversified tourism initiative aimed at today’s more discerning international
travelers;
-
An enhanced framework
for supporting and promoting small and medium size business development;
-
Targetted efforts
toward securing and growing financial services;
-
Continued emphasis
on promoting home ownership;
-
Modernization of
our fiscal regime for enhanced efficiency and business facilitation;
-
A new Planning and
Subdivision Act and regulations to bring better order to our development
going forward; and
-
The exploration
of alternative sources of energy and related green initiatives.
While foreign
direct investment flows into our country have declined, there are new
signs that several of the tourism related developments which stalled
because of the global recession and international financial crisis are
preparing to move forward this year.
And, it is
expected that as the US economy begins to grow there will be improvement
in the second-home market. Also, investments in other segments
of our economy are showing positive signs.
Statoilhydro’s
acquisition of South Riding Point Holdings in Grand Bahama is providing
an excellent opportunity for that facility to once again become an important
contributor to the Grand Bahama economy. The upgrade and refurbishment
of the facility will result in the arrest and reversal of the substantial
environmental degradation which has taken place at the site over the
years. Some 55 individuals are employed by Statoil today.
Vopak Terminal
Bahamas, the new owners of BORCO, are nearing completion of a $200 million
upgrade and expansion of their facility near Pinder’s Point and Lewis
Yard. A further $300 million expansion of the facility is scheduled
to commence early in the second quarter of this year. Vopak’s
continued investment in its facilities in Grand Bahama brings increased
job security to the 169 Bahamians engaged at the facility and is expected
to create an additional 30 jobs once the expansion comes on stream.
Work associated with the expansion has already created some 250 construction
jobs and this number is projected to increase to as many as 600 jobs
at the peak of construction.
A number of
large international companies are opening corporate headquarters, sales
offices and training facilities in The Bahamas. Most notably,
the exclusive Swiss watchmaker Rolex (Caribbean) has received approval
to locate its watch making and repair training centre in New Providence;
Oldcastle Building Products (Caribbean) was approved to operate its
sales office for the region and North America from New Providence, and
Brimac Environmental Group received approval to transfer its corporate
headquarters to The Bahamas.
Tourism is,
of course, our business. We are focused on making our islands
more accessible, more affordable, and more convenient. And, we
have been able to maintain our market share, maintain our room rates,
and grow certain segments of our business.
We have more
cruise ships visiting our shores than ever before, bringing in last
year more than 3.5 million visitors. There have been double-digit
increases in cruise passenger delivery each month during 2009 to New
Providence, Grand Bahama and the Family Islands. The month of
December was particularly exciting when we welcomed the newest addition
to the Royal Caribbean fleet of ships, the first in the Genesis class,
the
Oasis of the Seas.
Significantly,
the three major cruise lines which operate private beach experiences
in The Bahamas have undertaken significant upgrade and in some instances,
expansion of their Bahamian facilities in the Berries, Abaco and Eleuthera.
We now have
more air service than ever before; new and expanded service from the
United States and Canada resulted in an increase of almost 400,000 seats.
The opening
of the new luxury 183 room Sandals Resort at Ocean Bight has created
employment for some 300 Bahamians and will, we expect, stabilize Exuma’s
economy this year.
The acquisition,
refurbishment and reopening of the small boutique Tiamo Resort in Andros,
the opening of the upscale Delphi Club in South Abaco, and the scheduled
April opening of the new S & T Beach Club in San Salvador reflect
a growing trend internationally of the development of exclusive specialty
boutique resorts which are proving to be less susceptible to the ups
and downs of the world economy.
The viability
of these small resorts is being demonstrated by the success of other
small bed-and-breakfast resorts around our islands. Many of them used
the traditional summer lull last year to access concessions under the
Hotels Encouragement Act for a host of refurbishment and enhancement
projects.
Some 862 construction
workers are now engaged in the construction at the multi-million dollar
luxury golf and marina resort, Albany, in south western New Providence.
Another 71 Bahamians are engaged by the Albany Development Company bringing
the total number of Bahamians engaged at the Albany project to some
943 individuals.
The $75 million
first phase of the Caves Heights condominium development on West Bay
St and Blake Road is nearing completion. It is projected that
as many as 200 construction jobs will be created during $25 million
Phase II construction of the upscale Caves which is now getting underway.
We are hopeful
that a number of the stalled previously approved tourism related projects
will re-start or commence in 2010. Several projects in Eleuthera, Abaco,
Long Island, Cat Island and Rose Island are also encouraging.
The pace of
sales in the second-home market remained soft last year. Still,
the decline was considerably less than anticipated demonstrating that
while big business was particularly susceptible to the slowing economy
world-wide, private purchases went ahead. In this regard, second-home
sales in New Providence, Abaco and Grand Bahama have proven to be most
resilient while sales in Exuma, Eleuthera and Long Island have lagged
more significantly.
Our aim remains
to create jobs, increase business opportunities and grow individual
and family income.
Home ownership
continues to be a major source of economic empowerment of our people.
Recognizing the terrible strains being placed upon homeowners in meeting
mortgage requirements in difficult economic times, we introduced stamp
tax exemptions for purchases of dwellings and building lots, as well
as for mortgage transfers and debt consolidation through mortgages.
Between July
and December last year, more than eleven hundred applications were approved
under this scheme with applicants benefitting from exemptions of some
$6 million.
Two new government
communities of more than 1,000 lots will be developed; one along Carmichael
Road and the other in the vicinity of the South Beach Town Centre and
the C.V. Bethel High School. At least half of these will be serviced
lots available for purchase by individuals who wish to construct their
homes independent of Government assistance.
The remaining
lots will be developed by the Department of Housing to meet the demand
of individuals qualifying for mortgages and seeking the assistance of
the Department of Housing in the construction of their homes.
REDUCING
CRIME
While the economy
demanded and continues to demand much of our attention, other issues
present significant challenges, none more so than combating crime in
our society. I am confident that measures we have and are taking
will produce positive results in our fight. Ours is a full frontal
attack on the criminal elements in our communities.
A combination
of judicial strengthening, legislative reform, enhanced police enforcement,
the use of modern technology and partnership with church and civic groups
will assist us in reducing crime.
Our quality
of life is very much tied to our sense of security and safety.
We must take back that which the criminals have stolen and restore our
sense of peace and security. This year we will achieve gains in
this regard and will continue to build on those gains until we restore
the sense of tranquility and civility that once characterized our beautiful
isles.
We are, as
quickly as possible, facilitating the increase in the number of judges,
magistrates, courtrooms, legal officers and support staff to surmount
a lengthy backload of cases.
In our Family
Islands we will facilitate the appointment of Stipendiary and Circuit
Magistrates in Abaco, Andros, Exuma, Eleuthera and Long Island.
This year we
will introduce electronic bracelets to monitor persons accused of serious
offences who are released on bail. We have already introduced CCTV cameras
in high crime areas in New Providence as an additional tool in the arsenal
available to the police to assist with early detection and resolution
of crime.
A new Cessna
Caravan aircraft was acquired for the Royal Bahamas Police Force which
permits the rapid movement of personnel throughout The Bahamas and also
reduces the requirement for the Police Force to transport prisoners
and persons on remand via commercial aircraft.
We have also
given and will continue to give needed attention to empowering the Royal
Bahamas Defence Force to better carry out its mandate to safeguard the
territorial integrity of The Bahamas, to stop the economic drain and
environmental assault on our fisheries resources caused by poachers;
to protect against the illicit trade in controlled substances and small
weapons; to stem illegal immigration; to perform search-and-rescue missions
and to provide leadership in disaster preparedness and relief initiatives.
Towards this
end, we increased the Defence Force marine fleet and acquired two new
aircraft thus appreciably improving the surveillance capacity of the
Force.
The Defence
Force today operates from bases in Grand Bahama and Abaco in the north,
at Exuma in the Central Bahamas and at Inagua in the south. A
new base will become operational in Ragged Island this year, further
enhancing our capacity to protect our southwestern border from the illicit
traffic in controlled substances, the continued influx of illegal immigrants
and from continued assault on our marine resources by poachers.
EDUCATION
& HEALTH
Good, quality
education – academic and technical -- is the basis for successful
careers, is the child of innovation and is the source of our progress.
We continue
efforts to promote a culture of learning, improving our education system
by upgrading and expanding school facilities, ensuring the engagement
of adequate numbers of teachers -- both generalists and specialists
-- and making our school campuses safer, healthier environments.
We are entrusting
the management of education to the professionals employed at the Ministry
and Department of Education. We seek to make our educational system
one in which the primary focus of teachers is tutoring their charges;
where parents are committed partners in their children’s education
and where students are stimulated to attain their very best.
We have substantially
increased funding for government education loans and merit scholarships
so as to maximize the number of qualifying students able to pursue higher
education and training to meet the demands in our economy.
We are convinced
that achieving a more healthy population requires targeted attention
on a number of fronts simultaneously.
Towards this
end, the Ministry of Health continues to expand programmes to promote
healthy lifestyles, to maintain and sustain gains achieved in infant
and child immunization, infant and maternal health, and to combat the
spread of HIV/AIDS and other sexually transmitted diseases.
This year,
the prescription drug benefit will become available to elderly patients
and school age children from participating licensed pharmacies for 11
specified chronic and catastrophic illnesses including asthma, arthritis,
glaucoma, high cholesterol, ischaemic heart disease, diabetes, breast
cancer, prostate cancer, hyper tension, major depression and psychosis.
The list of
conditions will be reviewed periodically and modifications made to add
or exclude conditions according to defined criteria. The benefits
schedule will include prescription drugs and specific medical supplies
deemed necessary by the attending physician for treating the patient's
chronic condition.
A CALL TO
WORK TOGETHER
For all our
plans and actions, it should be clear to all of us that now more than
ever our nation’s best prospects for success rest with our ability
to exercise greater discipline, make greater sacrifices, and work together
as a people.
I urge us all
to realize that our changing economic fortunes present us with an opportunity
to make our future more secure. This means recognizing that the
“new normal” now characterizing our economy, one of a likely sustained
period of modest growth and moderate job gains, calls for modesty in
our spending and borrowing. By exercising discipline in our economic
behaviour going forward we can put ourselves in the best position to
take advantage of opportunities and meet challenges that present themselves
in the future.
Yesterday was
difficult; today is challenging; but tomorrow will be shaped by our
grit and determination. I am confident that we, the Bahamian people,
have both the ingenuity and resolve to endure the lingering challenges
of the current global economic crisis and to excel beyond it.
May God bless
us as we engage and work together.