The Tribune

WE THINK it is now time for Prime Minister Perry Christie to realise that he is Prime Minister of all of the Bahamas. He is no longer on the campaign trail playing to his hard core supporters.

It is also time for him to broaden his outlook to take in the whole Bahamas and --despite his election promises, many of which are unrealistic if this country is to get through its continuing economic downturn -- decide what is best for the commonwealth and not what would best play to the emotions of his committed followers.

He must also remember that although the PLP won the majority of seats in the House of Assembly, when FNM votes are combined with those of the DNA and Independents, the PLP did not win this country's popular vote. Fifty-two per cent of voters supported the Opposition forces, while 48 per cent voted for the PLP.

If the PLP continues to play to its base, most of whom do not understand the broader issues, it could not only destroy this country's struggling economy, but in the end their own party and its followers. It must be remembered that when investors and businesses are spooked and the downward spiral starts, jobs are the first to go. What Mr Christie is now offering does not inspire confidence - either at home among thinking Bahamians, or abroad among serious investors.

"We remain faithful to our commitment to explore all lawful means by which majority ownership of BTC can be restored to the Government and the Bahamian people," he said in his Budget address on the first day of the new parliament.

"We will very shortly arrange a timetable for discussions that we propose to undertake in this regard with the present owners of the majority stake in BTC and other interested stakeholders," he said.

He later explained: "The reason why I indicated that we would announce a timetable for discussions is because, quite frankly, I can't cause a discussion to take place before I sit with those persons who represent the owners of the majority shares."

Knowing this, then why did he go public before having these important discussions behind closed doors? Is it more important to excite his supporters and make them think he is doing something, rather than giving confidence to the persons whose confidence he needs to keep the economy growing? The private sector and the foreign investor are those he needs to help create the much needed jobs to employ more Bahamians so that they can pay their own mortgages without a government handout?

We agree with Winston Rolle, the Chamber of Commerce's chief executive, that it would have been better for the government to negotiate quietly behind the scenes until there was "something to hold on to", rather than come out with huge public fanfare to break a contract.

Mr Rolle said the Government's objective of regaining majority ownership in BTC could undermine investor - especially foreign investor - confidence in the sanctity of contractual agreements reached with the administration. (See article by Business Editor Neil Hartnell in today's Business section).

Numerous analysts, who all cover BTC's 51 per cent majority shareholder, Cable & Wireless Communications (CWC), suggested it was not in the interests of the Bahamas - and its economy - for the Government to attempt to renegotiate the terms of a deal for an asset that generated 28 per cent of the company's 2012 first half Caribbean operating income.

Of course, CWC and Lime management were aware of the risk they were taking should the PLP become the government. However, they believe that their privatisation contract gives them sufficient legal protection against any moves that might be made to change their agreement. We also believe that it would be too expensive for government to even contemplate such a move at this time.

We must remind Mr Christie of what happened to Freeport when the PLP government under the late Sir Lynden Pindling -- who once said "this (PLP) government prefers to honour its agreement even those of a former government" - broke a former government's agreement with its licensees.

However, after a heated and protracted disagreement between the Freeport licensees and the PLP government over an attempt to break the immigration clauses of the Hawksbill Creek Agreement, the licensees sought the opinion of Major Tasker Watkins, VC, QC, an eminent British constitutional lawyer. Mr Watkins said that any attempt to repeal or amend the essential parts of the Agreement would be "a rare abuse of the legislative powers which the government undoubtedly possesses. It would be a breach of faith. It would be a breach of contract".

The PLP government broke the contract and investors walked away.

Today, Mr Christie is trying to juggle his supporters against the investor. If he doesn't watch out, he will lose both, and the economy will collapse -- just as did Freeport's.