By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
There is “no way on God’s green earth” that the Government can hope to run an efficient National Health Insurance (NHI) system given its “disastrous” track record, an outspoken businessman has warned.
Dionisio D’Aguilar, Superwash’s president, told Tribune Business that the Christie administration would be expanding social benefits without increasing the number of contributors if it elected to press ahead with NHI before the economy fully rebounded.
This, he explained, was because NHI - and the taxation required to fund it - would do little to encourage the private sector to expand and create jobs for the 31,000 Bahamians who are currently unemployed.
“There’s no way the business community can absorb a 5-10 per cent additional tax, as is proposed at this time,” Mr D’Aguilar told Tribune Business. “I don’t know what they’re [the Government] thinking.
“There’s 31,000 people unemployed, and you don’t reduce unemployment by increasing taxes. While the [healthcare] situation is not ideal, and I agree we should try and provide universal healthcare to our people, coming so soon after the implementation of Value-Added Tax, it’s just a stupid thing to do.”
The Government’s consultants, Sangiest Internacional, have proposed a payroll tax as the main mechanism to finance NHI. They recommended rates between 1-5 per cent, depending on whether the Christie administration opts for the ‘smaller’ $362 million package or the ‘comprehensive’ $633 million NHI version.
Mr D’Aguilar, though, joined fellow businessman Franklyn Wilson in arguing that the Government should focus on making sure VAT was ‘bedded down’ before contemplating the further taxation NHI will bring.
The Christie administration is aiming to implement NHI in January 2016, exactly one year after VAT’s introduction, but Mr D’Aguilar urged it to concentrate on job creation as opposed to expanding social security benefits.
“More than anything, people want a job,” the Superwash president told Tribune Business. “The Government is not sending the right message to the business community to grow their businesses.”
Acknowledging that Baha Mar’s 5,000 permanent posts would likely cut the jobless numbers to around 26,000, Mr D’Aguilar said May/June’s school leavers would potentially take the unemployed figures straight back to the 30,0000 range.
“It’s ludicrous to keep thinking you can give people the benefits without the jobs,” he said. “It doesn’t bode well for your country when more people are taking benefits and not contributing. The Government should focus on creating jobs.”
Mr D’Aguilar’s comments touch on the NHI scheme’s sustainability. With 31,000 unemployed persons in the Bahamas at November 2014, and unable to contribute to NHI themselves, the existing 201,000-strong workforce will have the burden of both financing them and others - such as the elderly and indigent.
With demographics showing the Bahamas’ population is aging, as persons live longer, the NHI scheme will likely require increased contributions from employed persons to cover those will not me making any payments.
And, while emphasising that he did “not want to sound soulless and heartless”, Mr D’Aguilar said a $500-$600 million increase in taxation would “hurt more than it helps” given that NHI would assist “such a small segment of our population”.
“We always talk about raising taxes and spending money, but no one talks about creating jobs,” he told Tribune Business. “Let’s help those 31,000 people. What are we doing to address that issue? Talk of VAT and NHI is not going to encourage people to go out there and create jobs. I want a job before I get healthcare.”
Arguing that the Bahamas needed to put NHI behind it “before we contemplate any other expenditures”, Mr D’Aguilar said politicians tended to “spend money like crazy” unless measures were implemented to force them to be prudent and accountable/transparent.
He warned that without such checks and balances, the Government would “spend that VAT money so fast” that the fiscal deficit and $6 billion national debt will barely be dented. “The Budget is a farce,” Mr D’Aguilar said.
He then warned that the Government’s track record, in both healthcare and business generally, suggested NHI would be anything but efficient and well-run.
“There is no way on God’s green earth that the Bahamas Government should run a National Health Insurance system,” Mr D’Aguilar thundered to Tribune Business. “Name me one thing they run well. How many times do we need to make the same mistake?
“If the Bahamas government runs it, we will get a slack, sloppy, inefficient and corrupt system…. Why do we think running an NHI system is going to be even better than anything they’ve run in the past?
“If the Prime Minister insists on running NHI, for God’s sake, don’t let the civil servants run this system. It should be run privately, independently and with some checks and balances.”
The controversial audit, which found there was a $10 million difference in pharmaceutical inventory between the physical count and what was reflected in the Princess Margaret Hospital’s (PMH) computer system, is still fresh in the minds of many.
And the protracted process to open the Princess Margaret Hospital’s Critical Care Block also fails to send the right signals for those hoping the proposed NHI scheme will be well-run and managed.
“How much did that cost the taxpayer to build that building, and then failing to put in the equipment to operate it,” Mr D’Aguilar asked. “Why do they think they are going to run this [NHI] any better?
“They can’t talk about implementing NHI until they figure out how to run it, and it can’t be the Bahamas government. It will be a massive drain on the Treasury, and I can’t see them delivering better service than they are now - for PMH or anything else.
“Yes, it [NHI] appeals to the people. Yes, we’re going to give you free healthcare. But at what cost and level of service?”
Comments
asiseeit 9 years, 1 month ago
This government would say it is giving it's members a "hand up"meanwhile all the funds would go missing, the drugs would go missing, no PLP's would be required to contribute, and when it failed they would blame the white man or FNM. The PLP is a mafia organization!
birdiestrachan 9 years, 1 month ago
The government did manage National Insurance.
DonAnthony 9 years, 1 month ago
Yes, managing it right into bankruptcy. Birdie should familiarize herself with the last actuarial review done on NIB. Based on current contributions and benefits expended the fund will be insolvent ( that is BROKE by 2028). Fully 22% of contributions are consumed by administrative costs, by far the highest in the Caribbean. Barbados is 5.2% and Trinidad 4.9%. So it is 400% more expensive to run, no wonder it is going broke! In short NIB is a wonderful idea, it has helped many people, but it is terribly bloated and inefficient and has been mismanaged by successive governments. And this is the govt that he wants to manage a massive health care program? Truth is these funds should be sacred and managed by an independent management team free from govt interference. Instead govts have used NIB as a slush fund to pay for all manner of expenditures that have nothing to do with pensions. We can not afford a national health program until our beauracracy becomes honest, and efficient and with as minimal govt interference as possible. The 40 year track record of NIB gives us
asiseeit 9 years, 1 month ago
This government has admitted to being corrupt and not governing in the best interest of the Nation. They have admitted that they hire contractors for who they are not for the job they can do or at the best price. Therefore they govern to empower a small elite section of the Bahamas. They do not look out for the best interests of the Bahamas, they look out for the best interests of the PLP organization. This is why we pay 2-3 times what a contract should be worth. This is why we get sub par product from government contracts. This is why the public treasury is broke. This is why our infastructure is a shambles. This is why our civil service is so bloated. These morons are a mafia type organization that are destroying our country. They govern to empower them and theirs while the vast majority of the nation suffers!
TheMadHatter 9 years, 1 month ago
Complete foolishness, it's time for action.
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and that's coming from me,
TheMadHatter
ThisIsOurs 9 years, 1 month ago
I'm waiting...hurry up before they tank the country
bahamalove 9 years, 1 month ago
Welcome back Mr. D'Aguilar! You had gone silent for awhile. We miss your big juicy mouth breathing fire on this government's incompetence. I believe that we are in worse shape than the statistics currently show. If the government were to trim the fat from our bloated public service sector, we would have closer to 40,000 unemployed. Add to this the 5,000 - 6,000 school-leavers every year and one can see that we are headed towards an economic disaster. We can't keep building mega-resorts to absorb all of the jobless. They better come up with some new ideas quick!
Honestman 9 years, 1 month ago
Dionisio D'Aguilar accurately states what all intelligent Bahamians understand - this administration shouldn't be charged with running a street corner grocery store far less NHI.
birdiestrachan 9 years, 1 month ago
I believe this is the same man who said he can not find a Bahamian to manage his business . So what does one really expect from him.? He is a mere mortal expressing his opinion. No need to take him to seriously. I trust he has the good sense not to trust himself to seriously.
Weezie 9 years, 1 month ago
What? You think Bahamians clean better than haitians and jamaicans. Get serious! Say what you want about Superwash D'Aguilar has blown his competition out of the water! And he keeps expanding! You see his new location on Charles Saunders Highway? His mouth may be big but he puts his money in The Bahamas and EMPLOYS people! And he does NOT cost you or I (the taxpayer) one dollar. Put healthcare in the hands of our bozo politicians and they will bankrupt it like everything else they run on behalf of us all.
The_Oracle 9 years, 1 month ago
I love how we tear down anyone who suggests things can be better or should be changed! Gad Damn Cannibals. We eat our youth, shoot any head sticking up above the short grass, Idolize corrupt politicians and drug dealers, virtually panic if anything does change for better or worse. The Government cannot even run a road traffic dept! Do we love attending funerals so much we are willing to let the government provide more of them? Generally speaking, Nassau is a cesspit, so IF Superwash is one, it would fit right in. If it is not, it soon will be given the way we treat buildings and property. Government running healthcare is like numbers houses running banks. Every body grinning from ear to ear as the country goes to shyte.
duppyVAT 9 years, 1 month ago
The government doesn't like men like D'Aguilar because he doesn't mince words with them. Men like him should form a coalition with Doc Rollins, Greg Moss, Bran etc and start a real effort to take back our country from the PLP/FNM political dinosaurs. We have too many kiss-ass Chamber of Commerce leaders who looking for perks from the politicians and agreeing with all of this VAT, NHI and gambling nonsense.
DreamerX 9 years, 1 month ago
People in opposition to a government facing hardships always sound good. But it does not logically follow, that someones criticisms means they know anything or can provide anything. I don't have a party, I do not consider voting to be prime. I consider my everyday actions to be the reason for my outcomes. Stop putting your investments into political parties and you too become self-sufficient.
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