The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Prime Minister yesterday justified the COVID-19 restrictions imposed on businesses by arguing that the tourism industry would have been "destroyed" had the virus been allowed to run amok.

Dr Hubert Minnis, in announcing the easing of several measures, said The Bahamas would have been branded "a COVID-19 hot spot" - something that would have "destroyed our reputation internationally" and undermined prospects for tourism's rebound - had the Government not intervened to prevent the virus spreading unchecked.

Arguing that the harsh medicine had been painful, but necessary short-term pain for longer term gain, he said the Government and the private sector "must now control the opening" of the economy and businesses in much the same way as temporary shutdowns/restrictions have been handled in recent months.

Disclosing that he had been asked by a businessman, on the way to deliver his address, why the Government had been "so hard on the business sector in locking down", Dr Minnis responded that the surge in "second wave" COVID-19 infections on New Providence, Grand Bahama and Abaco had overwhelmed a public health system that was already badly strained prior to the pandemic.

With coronavirus cases taking up most of the available bed space at the Princess Margaret Hospital (PMH), especially in its intensive care unit (ICU), the Prime Minister argued that the health system would have collapsed - with doctors and nurses reaching burn out point, and many becoming infected themselves - unless the Government implemented restrictions to reduce community spread.

Although these measures have resulted in some businesses closing temporarily or for good, while others have been forced to operate on just a fraction of the revenues and cash flow they have been accustomed to, Dr Minnis said a failure to act on the recent COVID-19 spike would have dealt even greater harm to the economy.

"We were placed in a situation where, had we allowed the virus and infections to continue to rise, it would have destroyed our reputation internationally and we would have been recognised as a COVID-19 hot spot," he argued, "destroying our international economy and likewise destroying our domestic economy."

Noting that businesses were themselves being forced to close for sanitising and deep cleaning, as staff members tested positive for COVID-19, Dr Minnis said the decisions taken by the Government were designed to save lives and protect the healthcare system from failure.

With infection rates on New Providence and Abaco having reduced satisfactorily following the imposition of the latest measures in early October, he added: "We decided to control the closure of our businesses as opposed to allowing the virus to force their closure. As we controlled the closure, now we must control the opening."

Dr Minnis also urged companies to ensure their staff and customers abide by the COVID-19 health protocols, revealing that eight out of every ten calls in the 2,888 made to the COVID Command Centre related to persons not wearing masks or social distancing inside a business establishment.

"If we work together to do this, we will be able to keep various areas of the economy open. It is in all of our best interests to follow the health measures. It is better for business and it is better for the country at large," he said.

The Prime Minister spent a significant portion of his address hailing the "unprecedented" support his government has provided to Bahamian businesses and entrepreneurs, especially micro and small businesses, during the pandemic.

In particular, he praised the newly-launched $5,000 small business grant launched by the Small Business Development Centre (SBDC) to help persons get into business or expand existing small enterprises. He added that the initial $500,000 allocation to the initiative is being doubled to $1m.

"These are grants or funds that these entrepreneurs get to fund a specific business need that they have. These funds do not have to be repaid," Dr Minnis said. "To date, the SBDC has received over 400 applications toward the $500,000 that has been budgeted for the programme.

"The response has been so positive, that the SBDC has shifted its budget to add an additional $500,000 to the programme to bring the total programme allocation to $1m. Through this programme, individual entrepreneurs and micro businesses will get equipment, supplies and materials to allow them to start a business or to give their enterprise a boost."

Noting that the SBDC has provided $52.7m in loans and grants to more than 950 Bahamian micro and small businesses since his administration took office in 2017, Dr Minnis added that some $40m of this related to support for those affected by Hurricane Dorian and the COVID-19 pandemic.

And, of the $50m per annum that the Government has promised to provide Bahamian entrepreneurs over the next five years, Dr Minnis said half that sum - $25m per year or $125m in total - will be targeted at young Bahamians and female entrepreneurs in a bid to focus on "marginalised and under-represented groups".

The Prime Minister also reaffirmed that the SBDC will be launching a $1.5m Youth Programme to "provide grants, loans, training and business support for young entrepreneurs getting into their first business or expanding their existing businesses".