The Tribune

DESPITE a predictable low grading from the leader of the Opposition, the general consensus has been the Free National Movement Government performed reasonably well during its first year in office and is gathering momentum as it seeks to live up to the expectations of the electorate.

The Prime Minister has spoken of having laid the groundwork for better times to come and referred to the earlier positive comments by the International Monetary Fund about the country’s improved economy. With a huge majority and no danger of being forced out of power, it seems the FNM is well placed to push through much needed measures to put the country back on to a better long-term economic footing after the abysmal performance and failures of Mr Christie’s Progressive Liberal Party government.

In light of the previous optimism, the IMF’s finding in its Article IV report this week that an adjustment of $240 million is needed for the Bahamas to reach its fiscal consolidation goals may have surprised many, and it has put the economy back at the top of the news agenda. To many observers, the IMF’s suggestion to cut recurrent public expenditure – in particular, trimming the cost of civil service salaries but not capital expenditure on essential infrastructure – is sound advice. This is not the first time the IMF has called for a reduction of the size of the public sector and moves towards a gradual rationalisation of civil service jobs, including the termination of temporary workers, are surely overdue.

With four years of its electoral term to go, we believe the FNM Government is in a strong position to tackle the whole issue of a traditionally bloated civil service and the engrained culture that somehow governments “owe people a living”. It has always been a politically toxic subject, but the Deputy Prime Minister has already described plans to deal with it carefully and sensitively. This ought to be the time to mount a comprehensive review of the whole government machine in order to determine the optimum numbers of people with the qualifications and experience needed to deliver the government’s policies and to provide the necessary official services to the public – and it should include a shake-up of the quality of service across-the-board together with a system of accountability for public sector workers.

Another troubling matter is the revelation that public sector non-contributory pensions are currently unfunded so that the system has become unsustainable as the Government’s pension liabilities have reached unacceptable levels. Reportedly, successive administrations were warned some time ago of a looming pensions crisis but neglected to address the issue, so it is clearly important that some sort of corrective action should be taken as a priority.

There can be no doubt this FNM Government is committed to fiscal reform and liberalisation of the economy. This includes improving the ease of doing business. But one of the criticisms of Dr Minnis’s first year has been the perceived lack of consultation, coordination and control.

One recent example was having to scrap the Customs Department’s new requirement for all importers when clearing their goods to provide proof of Central Bank approval permitting expenditure of foreign exchange – and presumably this was not thought through properly. Another is the proposed mandatory tug boat fee for commercial ships as well as cruise lines on whom we are heavily dependent for tourist revenue but who are strongly opposed to paying for assistance from tug boats that is not required.

The Government seems to need better overall direction and management in order to ensure the so-called “bigger picture” is always taken into account in individual cases.

A most significant development is the newly-published Fiscal Responsibility Bill which is due to be tabled in the House of Assembly to coincide with this year’s Budget. Its consultation period of only two weeks looks to be far too short, but this draft bill has already been broadly welcomed as establishing a framework of rules, procedures and requirements that should help to achieve fiscal consolidation targets including the level of deficits and public debt. As often in The Bahamas, the key will be implementation, compliance and accountability, including the application of sanctions in case of breaches and whether the limits imposed on future governments can be enforced.

Overall, we believe the Government should be commended as it takes steps to strengthen the economy and establish a sound basis for the future. But it also needs to continue to demonstrate a capacity for honest, efficient and effective governance - which, sadly, its PLP predecessor failed to deliver - across the whole range of its activities.

A ROYAL WEDDING TO SAVOUR

It is hardly surprising that the prospect of a Royal Wedding tends to lift the spirits of Britain as a nation and makes people proud – and tomorrow’s ceremony for Prince Harry and his fiancée Meghan Markle is no exception. The pomp and pageantry together with the magnificence of the surroundings and the evident happiness of the couple makes for a heady mix which even the most curmudgeonly of observers will acknowledge.

Despite the bad publicity about the bride’s family which has dominated the international media during the last few weeks, most people will surely hope this will not mar the event itself and that the wedding will go smoothly in accordance with the impeccable planning for which the British are renowned.

We think we can speak for many Bahamians as well as British expatriates among us in offering Prince Harry and his bride our congratulations on the occasion of their wedding and our very best wishes for their future happiness.