The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Government is planning to restructure the Bahamas Development Bank (BDB), the Deputy Prime Minister yesterday describing private sector reliance on public contracts as an “upside down equation”.

K P Turnquest told the Eleuthera Business Outlook conference that the Government wanted the BDB to be “a true development bank”.

“We are in the process of restructuring the Bahamas Development Bank,” he confirmed. “There are those who are of the view that the bank has lost its focus and its relevance in this modern Bahamas.

“Access to capital is still a significant challenge for would-be entrepreneurs, particularly in economies like Eleuthera and other Family Islands, where there may not be much opportunity that one can see in the present circumstances, but given the right set-up - and access to finance - they can develop and help to develop economies in these Family Islands.

“We are taking a very progressive and visionary look at the Development Bank to cause it to return to its original mandate, that of being a development bank, not a facilitating bank for those who can access credit in the commercial sector.”

The Deputy Prime Minister, who is also minister of finance, said the Government had also committed $5 million to the Bahamas Venture Capital Fund, and was coordinating other financing and business support agency efforts to avoid overlap.

He also highlighted the need for the private sector to drive employment. “Since coming to office, one of the biggest challenges is that everyone comes to the Government looking for a contract,” said Mr Turnquest. “It seems as though a lot of businesses would not be in business if it were not for the Government. That equation is upside down.

“Government cannot be the major source of income, nor can it be the major employer for persons because the tax base would not be big enough to support that. We have to start shifting more of the burden to the private sector. We can do that in a number of creative ways such as tax incentives; through entrepreneurial programsme. We have to figure out how to change the model and get more people engaged in the private sector to create employment for themselves and the country.”

Mr Turnquest said the Minnis administration was not only keen on ensuring that more Bahamians get into business, but will also ensure that the Government directs business to them.

“We want to see more young, enterprising Bahamians get into business, and we have committed to not only providing start-up grants but to ensure that at least 10 per cent of government business goes to these entities to ensure that they have a foundation on which to build,” he added.