The Tribune

WITH THE Bahamas’ economy in desperate straits – the need to reduce our crippling national debt, get Bahamians back to work, and attract both local and foreign investors – we were surprised that Prime Minister Christie would reveal at an international conference how little his government respects contracts, especially those negotiated by a previous government. It was a move certain to get the attention of foreign investors. However, it was not a move that would encourage an investor — be he local or foreign – to want to do business in future with any government of the Bahamas.

On July 22 Mr Christie – although delayed for an hour by a Bahamasair plane, which was stopped by US Customs to be spot checked for drugs — eventually arrived in Miami to attend the weekend CANTO annual conference and trade show. Billed to give the keynote address to the Caribbean telecommunications association, Mr Christie announced that his government would soon engage in discussions to “recapture” the majority stake in BTC. He said that his government was committed to regain the controlling interests in BTC from Cable and Wireless Communications.

“As you know, the majority stake in BTC was sold by my predecessors to Cable and Wireless, and with it, executive control over BTC as well.

“My government, however, was elected with a mandate to take all lawful means to recapture majority ownership of BTC and I expect that discussions towards that objective will soon begin,” he told the group.

With the IMF warning the Bahamas that its 57.6 per cent debt-to-GDP ratio has already passed the threshold where it will become “a drag” on the country’s economic growth, how will the Christie government meet the purchase requirements to regain BTC? It is predicted that by the end of the 2012-2013 fiscal year the Bahamas’ national debt will be more than $5 billion. Provisions in the Cable & Wireless contract preclude it selling to any company or group that does not have market capitalization of at least $750,000,000. The PLP itself has admitted that this figure “puts it out of the reach of any Bahamian company.”

And so how does Mr Christie plan to go about getting BTC back in the fold, why is this ownership so important to the average Bahamian, and why, having already made such a huge investment, would Cable and Wireless even consider granting concessions to accommodate the Christie government?

The only way that BTC could be sold in the first place was to get government out of the way. No government-run corporation has ever succeeded because instead of being managed as a business it has always been operated as a toy for whatever “boys” are in power.

Several years ago chairman of Bahamasair, PLP cabinet minister Philip Bethel, had to admit that the failing airline could not afford to pay its staff. He was also forced to admit that it was his own hiring practices that had turned the airline into “almost a social service.”

Bahamasair is still a financial albatross on the public treasury. It should be sold, and quickly, but it cannot be sold, because it is not a commercially viable proposition — in fact there is nothing worth selling. Not only is it broke, but all industrial agreements have expired and soon the unions will be howling to squeeze more from a dry purse.

The PLP used to boast about the people’s hotels, but the people soon found that that ownership meant nothing. It was the politicians who frequented the hotels and did not expect to pay – after all weren’t they government owned? It was little wonder that the hotels failed. It was Hubert Ingraham, who on becoming prime minister in 1992 had to sell the hotels, improve the country’s international reputation, and get the Bahamas back into the business of tourism.

Mr Christie has given himself 100 days from May 7 to reduce crime — which seems determined to continue unabated — get Bahamians back to work and complete a long agenda, which cannot be done unless he concentrates on what is important, and stops wasting his time on the impossible.

How much further ahead will Bahamians be to be able to boast that they own BTC? It’s an empty boast unless, of course, by government ownership the corporation can be greatly improved — and we all know that with its past record that’s an impossibility.

Cable & Wireless has had difficulties, probably due to the outdated equipment, and all the other un-business like problems encountered at the corporation. Now that they are starting to break through, it is very unlikely that they will be in the mood to enter into any negotiations with the Christie government.

In our opinion Mr Christie is wasting everyone’s time. There are so many other things that need his attention if Bahamians are to get back to work and this country is to move ahead. It would now be wise for him to get on with the job of governing and leave Cable & Wireless alone to do what it does best.