Michael Halkitis
• The wrong text appeared in the spot earlier this morning. It has now been corrected.
By KHRISNA VIRGIL
Tribune Staff Reporter
kvirgil@tribunemedia.net
THE government is reviewing a proposal from the Clearing Banks Association on how the mortgage relief programme can be revived yet again, according to State Minister of Finance Michael Halkitis.
The first attempt at the programme flopped before any homeowners received assistance. It was branded by Prime Minister Christie last year as a disappointment.
“With respect to the programme itself,” Mr Christie said, “I had anticipated myself the 400 who are qualified for assistance would have received it from us – so I’m disappointed two-fold really.”
Now nine months since admitting the programme was a failure, Mr Halkitis explained to reporters that officials were in the midst of deciding whether or not another try at helping struggling Bahamians was something the government could afford.
“We had one go at it,” Mr Halkitis said. “It was not as successful as we would have thought it would be. We have gotten a subsequent proposal from the Clearing Banks Association which we are analysing to see if – one, we can afford it and two, if this is something that would truly impact people. It’s something we are still looking at. We have not given up on the process.
“As I said several months ago, we got some information from the Clearing Banks Association. They indicated that a certain number of people would be eligible. As we began the process, then that changed. It is what it is. I don’t need to rehash that and so we have to go back to the drawing board.”
When the plan was officially introduced in September 2012, there were said to be an estimated 4,000 home-owners in arrears – though Mr Halkitis later said that number had been lowered to around $1,000. As a result, the government later announced that $10 million would be allocated to the plan, which was a major campaign promise and listed in the PLP’s Charter for Governance in the lead up to the 2012 general elections.
Then in November, officials said there were 414 requests for assistance. However, only about 139 of them has fulfilled the requirements. Another 275 were being processed, according to The Tribune’s records.
While officials continue their review, Mr Halkitis said legislators will move ahead to enact the Borrowers Protection Bill, Mr Halkitis said.
Comments
ohdrap4 10 years, 3 months ago
Is VAt a new attempt at mortgage relief? Or is the resurrection of mortgage relief horse another excuse not to table VAT tariff schedule?
Can the tribune launch alittle applet next to these pictures and record how many eggs the readers toss?
ADMIN 10 years, 3 months ago
Sorry - wrong story went up earlier.
ohdrap4 10 years, 3 months ago
Yep that was in Barbados, here in the Bahamas the government controls spending very well, and has no over drafts.
right, the bahamas, has no issues, no issues at all. the civil service is minuscule and no one borrows.
spoitier 10 years, 3 months ago
I was thinking down the line on both questions, if you want sell something try and come up with a bette pitch
B_I_D___ 10 years, 3 months ago
Definitely wrong headline for the story...so VAT has failed in MANY Caribbean countries that have similar characteristics to ours...we are the ONLY country moving to VAT that does not already have some other tax structure like income tax already in place. He is now saying the legislation may not be out until the end of February and we are meant to have everything in place to go live 4 months later? They are off their rocker. By all means, look at the other countries that are a close fit to our economy and make up, and compare...LEARN from those around you that VAT does NOT work effectively...oh, but wait...we should just ignore all these other examples around us cause the rest of them are full of crap and don't know how to run a government properly...as if we do...our government structure is an absolute archaic joke, and they are wanting to leapfrog into VAT which requires heavy reporting, tracking, accountability and the technology to back it. Bull crap. We couldn't be ready for a VAT set up for YEARS...let alone 4 months. Idiots.
BDN 10 years, 3 months ago
Not sure which country these officials live in... VAT is a gateway tax. We will soon have income tax as well. This and every government we have ever had has spending issues. Until this issue is taken into consideration, we will always be in the financial situation we are in now. Everyone is going to lose 15% of their pay right off the top. Salaries aren't going up but prices are.
The poor and middle class will feel it the most. I've heard rumors that Excise Tax (Duty) will drop by 17% and that VAT is only 15%. Reads well, but figures don't lie.
You buy something for $100 and pay 85% duty. Your final figure is $185. Taking 17% (now $68) off means something that cost $100 will cost $168. The thing is, you now add the 15% to the total cost making your final price $193. That's a whole $13 increase. Businesses are subject to price control which means their profit margins on items have to reduce due to VAT. On top of that you have utility bills, maintenance, salaries, and more. Going to be a rough adjustment.
JohnDoes 10 years, 3 months ago
Thats if the middle class does not become extinct after VAT's implementation. Then it will just be the rich and poor, or aristocrats and peasants.
BDN 10 years, 3 months ago
Been saving up for a few years just in case of something like this.Our business license fee is around $120k. After the new business license increase it will be around $300k.. Then add VAT.
B_I_D___ 10 years, 3 months ago
MORTGAGE topic change...
Another one of those great elections promises fullfiled...they are now trying to evaluate if they have the money to try do it all over again...THEY DON'T...that's why we are getting jammed with VAT...another empty election promise that was just used to get into the voters heads...which are apparently as empty as the promises.
JohnDoes 10 years, 3 months ago
All that money on the NTA and Unemployment increased, the NTA had a graduation of about approx 1000 and only approx 32 received actual jobs (just another crony initiative) and approx 62 received 'interviews'. Yet they think that the main reason persons dont have jobs is because they are under-trained or unqualified, yet this may be true for a lot, there are still a lot of qualified persons that dont have jobs. Salaries are not increasing, businesses are saturated with no prospects of expanding to accomodate the influx of persons looking for jobs. They are going to strangle us with VAT that is then only going to kill the hard working Bahamian, and cremate the ones that are unemployed. There will be more Bahamians that cant afford their mortgage, let alone pay their Cable or BEC bill. The country is in turmoil really, and crime is also a product of this.
HolandObserver 10 years, 3 months ago
here we go again!
sheeprunner12 10 years, 3 months ago
Is the PLP trying to pull another fast one like the BTC deal????????????
This is akin to Hitler's propaganda!!!!!!!!!!!!!!!!!!!!!
B_I_D___ 10 years, 3 months ago
...and yet people are buying it!! People are still voting thinking the either the govt or the people got the better deal over CWC...you can't make this crap up...they are so blindfolded and delusional, they will believe anything these jokers are saying. Some poor soul is now jumping up and down in anticipation of his mortgage relief being fulfilled...good luck with THAT one!!
JohnDoes 10 years, 3 months ago
old tactics from the Mein Kampf!
sheeprunner12 10 years, 3 months ago
The $100 million question is: Who gonna monitor this VAT money????????
Or is it going in the Consolidated aka Black hole Fund???????
WE NEED A VAT TRUST. LOL
ThisIsOurs 10 years, 3 months ago
You can't afford it. You have no money. Next?
ThisIsOurs 10 years, 3 months ago
You can't afford it. You have no money. Next?
Borrowers Protection Act? I can help you with that too, "anyone who's in our party gets to borrow". Next?
The_Oracle 10 years, 3 months ago
Of course it will go into the Consolidated fund, how else will they use it for free healthcare, mortgage relief, subsidies for the poor affected by VAT, etc etc. Paying down the National debt is the primary lie. It will never happen. Also, even the IMF says that revenue will be down for 5 years or so. Meanwhile businesses will close, belts will tighten, revenue gets the double hit. In comes income tax to the rescue! People need to realize Governments the world over have been considering citizens income as their own, ever encroaching on and borrowing against. and now they need it for their own purposes, and have convinced themselves that it is their to take.
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