The Tribune

By YOURI KEMP

The newly-appointed Fiscal Responsibility Council's chairman yesterday urged the government to "get back to fiscal prudence" and not rush Hurricane Dorian recovery in just one year.

Kevin Burrows, who also represents the Bahamas' society of financial analysts on the committee, that it will "have a task to get the government back on track quickly" after it served notice it will invoke the Fiscal Responsibility Act clause that allows it to "temporarily deviate" from set financial goals in the event of a hurricane or other natural disaster.

"Certainly we have seen on both sides - on the spending side sand on the revenue side - the council will have a task to quickly get the government back on track to where it was. But it has to be done in a humane and practical way," Mr Burrows said.

"By the legislation they have to come to the council, and come to Parliament, with any fiscal adjustments or changes, but given the impact with Dorian and what we have seen it is likely they would have to change their fiscal targets.

"Any advice I would give the Government would be to let's get back to fiscal prudence but also realise that you have been hit with a significant disaster and let's not try to do everything in one year. It's going to take time. We need to strike a balance and understand what our brothers and sisters in Abaco and Grand Bahama are going through."

Mr Burrows spoke as the Fiscal Responsibility Council's long-awaited appointment was yesterday confirmed by the Senate, with all five members given their instruments by House of Assembly speaker, Halson Moultrie.

The Council is an autonomous oversight body established by the Fiscal Responsibility Act, comprising technical experts from key industries who will provide checks and balances on the Government's financial affairs. The five bodies represented are the Certified Financial Analysts' Society of The Bahamas (CFAB), the Bahamas Bar Association, Bahamas Institute of Chartered Accountants (BICA), The Bahamas Chamber of Commerce and Employers' Confederation (BCCEC) and the University of The Bahamas (UB).

"This is not a political committee but these council members are free to analyse data independently of the Government. Some policy decisions may not be good financial decisions so the Council needs to be objective," K Peter Turnquest, deputy prime minister, said.

He told the committee members that the Government plans to bring its fiscal adjustment plan to parliament next week in a bid to finalise it in 20 November.

Gowon Bowe, BICA's committee representative, said: "Dorian has had a negative impact in both the revenue and the expenses. The question now is how do we spur economic activity to build our finances and our economy again.

"One thing I want to stress is that it all does not have to be paid at once. We have to temper our expectations of expenditures and make sure our expectations are realistic. It is tempting to do things to appease the public, but it is more important that we demonstrate discipline and to ensure we demonstrate that a reasonable quality of life can be delivered over a reasonable amount of time."

Turning to the waiver the Government is seeking, Mr Bowe added: "I think it is less than a waiver but more of a variation of their original targets. In the absence of a natural disaster there were targets that were set. This does not mean that they have to throw out their principles, but more of how does the Government adjust adjust them in light of Dorian's impact.

"I am waiting to see what they are projected to take out, and how do we improve what we take in. This is not a time for a blank check to go and spend and be reckless, but a time to ensure we are doing the right thing.

"I would encourage the Government to have less haste and more speed. If we pause and strategically develop plans, people will understand what we are doing. More importantly, we don't need to just be seen to be doing things; we need to be doing things. The planning process is far more integral and intense than the execution. Let us be very deliberate in our plans how we go forward."

Christel Sands-Feaste, the Chamber representative, added: "Certainly Dorian was catastrophic. The level of damages to the country's finances would be equally catastrophic and historic. No one could have anticipated it. We certainly would expect that it had a significant effect on our finances.

"We will look at the details when they are presented to us. But it is not unexpected that the Government would have to make some adjustments. I'm certain that some of the numbers they have figured in their 2019-2020 budget have been impacted."

She added: "Our job is not as advisors. We are gatekeepers. We are here to provide an independent voice to oversee and comment, and provide comments and concerns over the fiscal strategy and plan moving forward for the Government. As you can see we have a representative from the Chamber of Commerce, another from BICA and another from the Bar Association."

Khalil Parker, the Bahamas Bar Association's chairman, is its representative, while Dale McHardy is there from the University of The Bahamas.