The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

PRESS secretary Clint Watson was unable to confirm yesterday whether the government has approved an increase for National Insurance Board contribution rates.

On Tuesday, Myles Laroda, State Minister responsible for NIB, told reporters that the government will soon announce its decision on whether NIB contribution rates will increase or not.

While he declined to say what course of action the Davis administration intends to take, a local daily reported that Cabinet had greenlit a rate increase which is believed to take effect on July 1.

When questioned yesterday, Mr Watson was unable to confirm the reports.

However, he noted that government was mindful of increasing costs facing Bahamians.

“I can’t say much on the increase because it’s not been announced as yet from Cabinet other than what you would’ve heard the minister talking about – the fact that a decision has been made,” he said.

“We don’t know what decision has been made as far as what it will be. What I can tell you though is as far as all of these increases, the Cabinet is mindful of that and that’s why programmes and designs are being implemented to try and soften the blow upon the Bahamian people.

“But I cannot say whether or not there has been an agreed increase because it hasn’t come to my desk yet.”

The Tribune previously reported about the dire straits of the fund over the years.

Most recently, this newspaper exclusively reported in April that the 11th actuarial review of the National Insurance Board predicted the fund could be depleted by 2028.

That report had reduced the fund’s potential depletion timeline by one year, as the 10th review had made a prediction of 2029.

It also recommended NIB to increase the contribution rate by two percent and continue increases every two years until 2036.

“That matter has been dealt with at Cabinet. We are at a decision. We have a little bit of cleaning up to do with regards to the decision that was made,” Mr Laroda said Tuesday.

“We (will) be coming forth shortly with the direction of which the National Insurance Board would go with regards to the raise in contribution rates and other recommendations that was made in the report that the executive management team of the National Insurance Board has recommended to the government that in their view needs to change.”

In April last year, Prime Minister Philip Davis said there would be no increase in NIB contributions until his administration was able to arrest the hardships facing Bahamians. He said: “These are difficult times and it would be a last resort for me to put any more burden on their backs.”

He added at the time: “We’ll see how we could be innovative and creative to ensure that we do not do or embrace such an initiative until we have brought the relief that is necessary to allow that to happen.”

In July, Mr Watson said the government was “being creative and finding additional ways to fund the National Insurance Board without just taxing the Bahamian people, which is the lazy way out.”