I am responding to an article that was published in The Tribune’s Business section on Monday, September 16, 2013. It was written by Mr Neil Hartnell and included points of interest from a prominent accountant, Raymond Winder, on ways of cutting our country’s deficit.
His main point was that concessions given under the Hotel Encouragement Act, The Tariff Act and Light Industries Encouragement Act, along with real property tax, totalled $285M. This sum, the article noted, constitutes approximately two-thirds of the projected $443 million GFS fiscal deficit for the 2013-2014 Budget year.
The article quotes Mr Winder thus: “Getting the fiscal house in order is even more important than creating incentives that can support jobs.” He goes on to say those jobs will not be deemed quality jobs.
As a Bahamian manufacturer entitled to the above incentives, I would like to offer Mr Winder the following comments:
It is impossible for local manufacturers to compete with foreign entities without such concessions. I know this first hand, being in business under such Government incentive programmes for the last 12 years. Mr Winder was a part of the former administration that removed the duty-free incentives, and subsequently put a large number of local manufacturers out of business.
If the new administration had not removed this 10 per cent duty, returning these concessions back to duty-free status again, there would have been catastrophic repercussions with multiple other Bahamian manufacturers going out of business as well.
It may interest Mr Winder that there are more than 500 Bahamian manufacturers registered under either the Tariff or the Light Industries Encouragement Acts. These companies employ in excess of 10,000 direct, and 2,500 indirect, Bahamian employees. I think it is fair to conclude that these incentives play an important part in our overall economy, with local manufacturers playing a vital role in boosting our GDP. Bahamian manufacturers are proud of the products we manufacture, and are proud of our Government’s support. We look forward to their continued support so that we can expand and increase our labour force.
T. Andrew Rogers
Bahamas Aluminum Manufacturing
Comments
The_Oracle 10 years, 6 months ago
Our Government is in a ever increasing bind however: How to continue to "Protect Bahamian Business interests" and look out for the "Small Man" in the face of their agreement under WTO rules ( and the EU-EPA trade agreement) to "Liberalize trade" and open the Bahamas up in all regards, goods and services, to "Foreign direct investment" Granted, this has predominantly been orchestrated by the FNM administrations, and the PLP, (The most nationalistic and protectionist) have been left holding the bag on implementation, and under the heavy pressure of the IMF and budget deficits across the board. The proverbial rock and a hard place. Seems to be a shortage of direct foreign money to pillage and skim, so looks like Bahamians will get skimmed sufficiently to please the Budget requirements and the IMF.
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