The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Opposition’s deputy leader yesterday said it was “a bit too late” to base the Bahamas economic future on “hope”, arguing that this was “no strategy” to combat Moody’s downgrade threat.

K. P Turnquest was referring to comments by Michael Halkitis, minister of state for finance, who said the Government was  “hopeful” the Bahamas’ creditworthiness will not be downgraded following “constructive” meetings with the Wall Street rating agency.

Representatives from Moody’s met with both government and private sector organisations over a two-day period, and the Christie administration now has to “wait and see” what the agency’s decision will be come the end of August.     

Mr Turnquest, though, responded: “Basically, it is a bit late to be basing our economic future on ‘hope’.   Hope is not a strategy, nor does it engender confidence that the Government is confident of its position and economic plan.”

He added: “Already, we have had a series of avoidable bad news emanating from this Government due to a lack of focus and conservative spending policies. 

“After racking up a record debt load in four years, in a period of general world economic growth, this government has presided over two years of negative growth due to policies that were not well thought-out, and they continue to execute bad policy initiatives that will further slow growth. 

“The onerous Customs penalty fees on couriers and imports, for example, threatens to slow international trade and cost high volume businesses thousands of dollars in punitive taxes.  This is not a growth strategy.”

Mr Turnquest said that while Value-Added Tax (VAT) collections had exceeded expectations, “the cost and misery being incurred by local businesses and consumers is horrible”. 

“When combined with the sad state of affairs at NIB, where pensioners on fixed income are receiving their benefit late or not at all, this is a recipe for social and economic disaster,” he added.

“The kicker is that despite this over-achievement on VAT collections, the gGvernment has still not been successful in reducing the national debt by one dollar. In fact, they have grown it to over 76.3 per cent, extremely dangerous for an open economy dependent on dwindling FDI  and tourism for growth and stability.”

Mr Turnquest continued: “We can do better and it will start with a renewed attitude of openness and inclusiveness.  It begins with an acknowledgement that we have a serious problem that will require all bright minds to aggressively and intelligently attack. 

“It will take an FNM government, open to advice and input from all stakeholders, businesses and civic entities, as well as ordinary residents, all making a concerted contribution to national economic development, and the political will to relinquish control of the economy so that it can breath and grow,” he added.

His comments came two weeks after Moody’s announced it was placing the Bahamas “on review” for a potential downgrade, due to both its unexpected economic contraction and further deterioration in the Government’s fiscal position.