The Tribune

The private sector is still hoping for an ‘11th hour’ pre-Budget meeting with the Government, so it can help it present “the most viable” economic plan for the Bahamas.

Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, told Tribune Business that such a meeting would be “prudent” given the extent to which both sides need each other.

Time, though, is rapidly running out for the private sector to give collective feedback, and assistance, on the Government’s fiscal plans for 2015-2016 and beyond.

Prime Minister Perry Christie is due to present the Budget in the House of Assembly tomorrow, and to-date the business community as a whole has little to no clue about the Government’s fiscal objectives and how it may impact them.

Emphasising that the BCCEC, and wider private sector, were seeking a “collaborational not confrontational” approach with the Government, Mr Sumner said they had managed to provide input into the 2013-2014 Budget prior to its presentation.

The BCCEC chief executive said that while he was aware that specific industry groups, such as the banks, had met with the Government to discuss its 2015-2016 fiscal plans, there had been no collective dialogue.

“Unfortunately, in this instance, the Chamber has not yet had the opportunity to sit with the Government on what they are proposing in the Budget,” Mr Sumner told Tribune Business.

“It’s still prudent, considering the Chamber of Commerce represents the majority of businesses in this country that will be impacted by whatever the Budget presents, and that the private sector is raising the revenue for the Government through VAT, Business Licences and Customs duties, that we would have some opportunity to have discussions with the Government. It only makes sense.”

Mr Sumner said a pre-Budget meeting would enable the private sector to understand the Government’s development plans, allowing it to “tap into resources and expertise” that might assist the administration and form public-private partnerships.

He added that the ultimate goal was to help the Government “present the most viable Budget for the economy at this point in time”.

“We’re still hopeful we will have an opportunity to sit with the Ministry of Finance prior to the communication and presentation of the Budget, only for the purpose that we feel we might be able to offer solutions to assist in the process and provide feedback,” the BCCEC chief said.

As for what the BCCEC is hoping to see on Wednesday, Mr Sumner told Tribune Business: “We’re all anxious to see what the uptake is from the VAT revenue collection, and want to see what those numbers look like in deficit terms.

“We have certain wish lists we’d like to see. We also want to see what the Government’s plans are for deficit and debt reduction, and what resources they will put into revamping the energy sector.”

Mr Sumner said it was too early to expect any major tax adjustments, especially on VAT, suggesting that the latter would “remain the same” for the next fiscal year.

He added that he also wanted to see a breakdown in VAT revenue sources between what was being collected by Customs at the border, and what is being produced from registrants and service providers.

Mr Sumner said he was also watching for any employment and workforce development initiatives; the creation of new industries; what is going into the National Development Plan; and “any future expansion of the economies on various Family Islands”.

Prime Minister Perry Christie, in his mid-year Budget in February, also foreshadowed that Wednesday’s presentation will include further announcements on the Government’s proposed National Health Insurance (NHI) scheme.

Given that NHI is supposed to be implemented in January 2016, Mr Sumner said: “We’d be very interested now to see what plans and provisions are being made for NHI.

“The Government would have to have made some provisions for that in this Budget.”

In particular, he expressed hope that the Budget would “shine a spotlight” on how the Government plans to finance NHI, and what the taxation rates will be.

“Up to this point, we don’t know for sure what it’s going to be, and if it [NHI] makes it into this Budget, the Government must have concluded how it’s going to be funded,” Mr Sumner added.