The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

AS UNCERTAINTY continues to linger over the proposed implementation of National Health Insurance, a former Cabinet minister has cautioned the government to closely evaluate the effects that the world market could have on the stability of the Bahamian economy in the next nine months.

Brent Symonette, a businessman and former deputy prime minister under the previous Ingraham administration, agreed that NHI was needed, but objected to a phased roll out of the health care scheme in January 2016.

He added that the government should not consider another tax to fund the initiative saying taxes would not only harm consumers, but could force businesses to close. This, he said, would “spark a downward spiral that the country will never recover from”.

NHI could cost as much as $633m to implement as a comprehensive scheme, according to Costa Rican consultants engaged by the government.

Sanigest Internacional has suggested a number measures to fund the scheme, including a payroll tax ranging from one to five per cent.

“I think we have to be very careful about the general state of the economy,” Mr Symonette said when asked about NHI on Sunday. “The unemployment rate is high among other things. You have to see what is happening on the street. People are suffering.

“They just introduced value added tax. What has happened at the moment is that the administration is saying that they collected a tremendous amount of money from VAT and that is correct.

“From a businessman’s point of view, you may decide to hang on for a few months to see how it works out so the fact that people didn’t close doors on day one doesn’t mean that they won’t close doors later on down the road.”

He added: “So I think we have that issue and we have the world economy and the whole question of Baha Mar that is coming on line on March 27 which could be a catastrophic problem as well.

“To try and bring NHI on the back of that I think is pushing things too quickly. I don’t want anyone to mistake what I am saying because there is a need for a social catchment policy for those persons who cannot afford critical care. But we have to be very careful that we don’t tax or make it difficult for businesses to continue to exist. If that happens we are going to see a downward spiral that we will never recover from.”

The Sanigest report, which was leaked to The Tribune, also recommended that the Christie administration increase taxes on items like alcohol and tobacco to fund NHI.

Free National Movement Leader Dr Hubert Minnis has called the government “insensitive”, saying any move to implement a new tax just one year after the roll out of VAT would have dire effects on the middle and poor classes.