The Tribune

ALTHOUGH Standard & Poor has downgraded The Bahamas’ sovereign credit worthiness to near junk status, the government insists that the country’s economic outlook is still good.

After all of government’s undelivered election promises, we think Bahamians have now tuned out their politicians. And those who have not turned down the volume on the chatter, are not only angry, but are vocal in their anger.

Government has expressed its disappointment that S&P has not had the good grace to give it credit for implementing the Value-Added Tax, nor has it acknowledged the implementation of government’s wider fiscal reforms. And, of course, the biggest black mark against S&P is that it has failed to see the improved outlook for this country’s economy.

Government might be proud of its introduction of VAT, but do the politicians ever listen to the grumble of Bahamians, particularly those who are struggling to make ends meet? You know those who mark their X on election day?

On this page today we publish a letter from an Androsian. He complains that he ordered $48 worth of hanging files from Amazon, but to take possession of them he had to pay $88 in Customs duty and other fees - the other fees being VAT.

Earlier this month, a letter writer reported that the Salvation Army Thrift shop had to add VAT to every purchase made at its shop, “including clothing, books and other useful items.” The reason being that because the Army sells mops made by the blind, everything has to be taxed. Never mind that what is made from these mops is used for charitable purposes. And never mind that all the other items sold at the Thrift Shop have been donated by the public.

“It is shocking that poor people should have to pay VAT on their purchases,” commented the letter writer. “I hope that there is some way to correct this deplorable state.” We agree that something should be done, because this is a scandal.

So government members might pat themselves on the back on the smooth introduction of VAT, but they should occasionally leave their ivory towers and listen to the moans of the people.

In the meantime, another burden for the Accounts Committee is to ensure that VAT is in fact being used exclusively for the purpose for which Bahamians have been told it was collected —to lower our national debt, which stands at $6.248 billion.

Then there is the accusation of cronyism — looking out for the “boys.” Long Island MP Loretta Butler-Turner complained earlier yesterday about the “rank victimisation and cronyism” in her constituency as emergency service vehicles remained without a close source of fuel, placing the lives of residents in a “precarious” position ahead of the arrival of Tropical Storm Erika.

By nightfall, government, realising the danger inflicted upon essential services personnel who would have to drive from the north to the south of the island to obtain fuel for their vehicles at the government sanctioned supplier, lifted the restrictions. Flexibility, said the announcement from the Ministry of Finance, is being extended in the Family Islands to allow Government owned vehicles to obtain fuel on credit from service stations that are in close proximity to the offices or residences where the officers are stationed.

“This convenience is for providers of essential services, including police, customs and immigration officers, doctors, nurses and other similar employees,” said the government release. It added that “public officers should ensure that all invoices record the license plate number of the Government vehicle, the authorized driver and the tax identification number or TIN of the fuel supplier.”

Apparently, Long Islander Basil Fox’s family has for the past 50 years been the retailer and distributor of fuel for north Long Island. It is understood that Mr Fox – who we understand is FNM – was notified by civil servants that they could no longer purchase their fuel from him. They now had to buy all their fuel from government’s recognised agent —Sun Service Station or Shell. It is claimed that this is a Frankie Wilson company. His company’s Shell outlets are located in the south while most of government’s emergency services are located in the north. This would mean that these persons would no longer have the convenience of being serviced by Mr Fox, but would have to drive all the way south to PLP Frankie Wilson’s Shell stations.

This restriction has been temporarily lifted until the passage of tropical storm Erika.

However, S&P’s greatest concern for the Bahamas’ economic future is the fiasco at Baha Mar, which if the resort does not open in time for the end of year tourist season, could see an S&P reassessment when our country will be dropped down one more notch and tossed in the waste basket as “junk.” As the Baha Mar discord continues, only a miracle will open its doors to start hiring Bahamians and earning revenue to pay its creditors before year end.

Yet, this government appears to be the only entity still filled with optimism.

We have yet to meet a business person who is cheerful about the future. They are pulling back, hedging their bets and hunkering down as they watch and wait. However, the biggest concern is the talk among young, talented Bahamians — the type of Bahamians that this country needs desperately. Many of them see no future here — certainly under this government — and already too many of them have left. We have even heard young mothers seriously discussing whether they should deliver their babies in the US to at least give them a choice of nationality should this country collapse. The talk is dismal.

We have talked with realtors about the investment climate here. Several have said that foreign investment this year is down from between 70 to 80 per cent. Only one firm seems to be holding its own.

Talks with foreign investors is even more disconcerting. It would seem that Prime Minister Christie is unaware of the damage done by his Foreign Affairs Minister Fred Mitchell about revoking an investor’s status in the country, and Labour Minister Shane Gibson’s insane remark that “psychological evaluations” should be done on all foreign developers seeking to do business in this country. When we are told that there is no longer a “healthy business climate” in this country, these are the two ministers they give as their examples.

It’s all very well for Mr Christie to try to distance himself from his two ministers, but no one accepts his explanation. These are two of his Cabinet Ministers, and when they speak, it is assumed — regardless of what Mr Christie thinks — that they are speaking on behalf of his government — after all aren’t they members of his Cabinet? If he does not agree with them, or they with him, why are they still sitting at his cabinet table? Or has our prime minister lost complete control? If this is the case then, unfortunately, this country is indeed in dire straits.