HE won’t win many friends in politics by saying it – but Myles Laroda is right to draw attention to the state of the National Insurance Board reserves.
Back in April, when he raised the prospect of “numerous” increases to the NIB rate, the talk was swiftly squashed by Prime Minister Philip “Brave” Davis.
On Thursday, Mr Laroda called again for a contribution rate increase – this time of two percent.
He said that NIB reserves are expected to “decline sharply” in the next few years, and that one of the reforms that must take place – not could, not possibly, hit must – is an “increase to the contribution rate”.
There should really be no surprise over the idea that reforms need to take place to safeguard the NIB fund. When an actuarial report was filed in 2002, it forecast that the fund would be bankrupt by 2030 – and time has been no kinder to the fund given the outlays after hurricanes and the pandemic.
The minister with responsibility who received that report 20 years ago was Mr Davis, so this should all come as no shock to anyone concerned.
Credit then to Mr Laroda for being bold enough to say what needs to be said, and to lay out a plan for how to deal with it – unpopular as it may be.
It could even lead to questions over his position – after all, it was only in April that Mr Davis categorically said there would be no increase until his administration has been able to arrest the hardships facing Bahamians.
The recent Budget may be hailed by the PLP for many things, but it won’t have shifted that dial enough yet to show a significant enough difference to change Mr Davis’ answer. Mr Laroda then could be seen to be going against the government’s message.
Mr Davis said at the time that it would be a “last resort for me to put any more burden” on the backs of the Bahamian people.
In the absence of an alternative proposal, however, we are left to ask whether Mr Laroda’s suggestion has the weight of government behind it.
Well done, Mr Laroda, for saying what needs to be said. It is refreshing to see the nation’s needs being confronted in such a manner.
The trouble with kicking the can down the road is that the longer you do that, the greater the remedial action you need to take when the time comes.
That time has come for Mr Davis. He himself has called it a watershed moment. So what’s the plan?
Middle East
Another Middle East trip, another round of talks about the benefits for The Bahamas.
This time, it is the prospect of Qatar Airways to establish an aviation hub in The Bahamas to serve Latin America and the Western Hemisphere.
As talk goes, it sounds enticing – tapping into the funds of one of the wealthiest nations on the planet, and introducing new routes to bring more people to our nation.
As it is, however, it’s just talk – and it’s about time that some of these trips showed more tangible results if the government is to justify the extra funding it is pouring into overseas trips.
Deputy Prime Minister Chester Cooper’s statements is full of wanting to “continue to pursue” or being “interested in establishing links” and “causing there to be some promotion through Qatar Holidays to bring tourists to The Bahamas”. Ifs, buts and maybes.
The proof, as they say, is in the pudding.
Comments
Maximilianotto 1 year, 10 months ago
There is no Middle Eastern Pudding - endless BS trip at taxpayers expenses. Unbelievable. Country is broke. NIB $1,7 bn reserves have been pilfered the cookie jar is empty. Laroda at least says the truth. The rest is dreaming when just not driving over policemen.
moncurcool 1 year, 10 months ago
So the best that Laroda can do to "solve" the NIB problem is to do what all brain dead politicians do and that is to say increase contributions by 2 percent?
What about him saying let us stop government from pillaging NIB and using it as slush fund?
What about him saying government needs to make all it loans payments back to NIB?
Say that and then i will know we have someone thinking outside the box.
tribanon 1 year, 10 months ago
It's now way too late to prevent the inevitable financial collapse of the National Insurance Fund caused by the gross incompetence and greed of successive corrupt FNM and PLP administrations alike. From its inception the administrative costs of running the National Insurance Fund have been outrageously excessive due to its grossly over-bloated headcount combined with greedy crony consultants of every kind constantly sucking on it, not to mention the heavy toll taken by outright and unchecked fraud.
And of course, the National Insurance Fund's bank accounts will continue to be wrongfully used whenever possible by successive corrupt PLP and FNM administrations as a "go to" cookie jar to make all sorts of wasteful and inappropriate investments with total disregard of the NIB's fiduciary obligations and projected liquidity needs for our aging population. So along comes the very same people, who for decades have played a big role in the impending collapse of the National Insurance Fund, people like Davis and Gibson, trying to now convince those of us who have been making our National Insurance contributions for many years, that we are somehow responsible for its impending collapse by not contributing enough. And now LaRoda adds himself to the mix as the mouth piece for Davis and Gibson. who are behind the cruel drive to take even more out of our pockets. Talk about audacious gall !!
No matter what the very cruel Davis may now say in public, behind the scenes he is seeking to have employers and employees bail-out this defunct Ponzi scheme by way of higher, in fact exorbitant, additional contributions, combined with significantly reduced retirement benefits.
But in these extraordinarily difficult times, Davis and Shameless Shane Gibson are gravely mistaken if they foolishly think blood can somehow be had from a stone. The Bahamian people are completely tapped out like they have never been before, thanks in great part to decades of corrupt government activities of the kind Davis and Gibson are well familiar with. LaRoda is allowing himself to be used by Davis and Gibson to take the heat for this red hot and most explosive political potato.
DDK 1 year, 10 months ago
Well said and absolutely spot on. They just seem unable to ween themselves off the corruption that has been so rampart for so long. What a sickening and frightful way in which the Country finds itself. The signs have been there for so long. It is hard to believe that they never wake up!
sheeprunner12 1 year, 10 months ago
Will Bahamians now riot when they find out that their NIB contributions have been pillaged by 2028?
What will happen on the streets????
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